The Bahrain National Gas Company (Banagas) has entered into an engineering, procurement and construction (EPC) agreement with Japan's JGC Gulf International for constructing its ninth compressor station.

The $42.4 million project will include gas gathering and transmission lines, said a Banagas spokesperson.

The new compressor station is expected to compress and deliver about 60 million standard cubic feet per day (mmscfd) of associated and refinery off gas.

Energy Minister Dr Abdulhussain Mirza congratulated Banagas and JGC for signing the deal as he received Banagas vice-chairperson Wedad Mohamed Al Maskati and JGC Gulf president and chief executive Tadao Takahashi in the presence of Banagas board members and executive management.

Banagas general manager Dr Shaikh Mohammed bin Khalifa Al Khalifa said that the CS9 is among the only two high capacity stations capable of 60 mmscfd capacity, the other being CS7. "The new station will help relax our other compressing stations, that's why this will be a standby and has higher capacity."

Other stations worked at 20 mmscfd to 40 mmscfd range, he added.

The compressor turbine will be fired by residue gas - methane and ethane, said Banagas projects deputy general manager Mohamed BuRashid.

CS9 will help ensure continuous handling of up to 310 mmscfd of associated and refinery off gas.

With the commissioning of the new station, Banagas will be able to comply with the National Oil and Gas Authority directive of 'no flare, no vent'.

"This is a very important project for us and it stems from our history of delivering on time and to costs," Takahashi said.

"Our relationship with Bapco and Banagas stretches over 40 years. We are working hard in nuclear waste reprocessing and helping in cleaning up the waters affected by nuclear contaminants in the recent disaster," he added.

Mechanical work on the project is expected to be completed in 22 months, with the commissioning of the station in 2013. Banagas has already achieved 97 per cent Bahrainisation, Dr Shaikh Mohammed said. It exports propane, butane and naphtha worldwide.

The deal was signed by Takahashi and Al Maskati. – TradeArabia News Service