Companies in Bahrain implementing, or planning, industrial projects will have to pay more for natural gas from April 1.

The Cabinet yesterday (January 12) decided to unify the price of natural gas, and increase it gradually, following a memo submitted by the Energy Minister, said a report in the Gulf Daily News (GDN), our sister publication.

His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa chaired the weekly meeting at Gudaibiya Palace, in the presence of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Premier.

The Cabinet has also decided to readjust the price of natural gas which is used in generating energy for industrial projects.

Sources told Akhbar Al Khaleej that natural gas is currently priced at $2.25 for a million cubic unit for industrial projects and $2.50 for new projects. The Cabinet decision will unify the price at $2.50 for both.

However, the Cabinet stressed that the new prices will not affect citizens nor will it have an impact on Bahrain's competitiveness or its ability to lure investors in the industrial sector, Cabinet secretary-general Dr Yasser bin Essa Al Nasser said in a statement after the meeting.

The cost of natural gas ranges from $13 to $15 in Dubai while in the rest of the UAE it is $4.5 for industrial projects and $5 for new ones.

In Oman it is $5.5 for industries and $6 for new projects.

Kuwait is also planning to reconsider gas prices as has been published in local newspapers. - TradeArabia News Service