Saudi Arabia-based JGC Gulf International, a part of Japan’s JGC Corporation, has been awarded a $98.7 million contract by the Bahrain National Gas Expansion Company (BNGEC), a fully owned subsidiary of nogaholding, the investment and business development arm of Bahrain’s National Oil and Gas Authority (NOGA).

 

The engineering, procurement and construction (EPC) contract is for construction of an additional storage and pipeline facility and forms the second part of the Bahrain Gas Plant project (BGP Part 2) at BNGEC, announced a statement from nogaholding.

 

The construction work for the second EPC is expected to be completed in 24 months, with the commissioning of the overall BGP project expected by October, 2018, it added.

 

The project will involve the installation of a new pipeline system to transport gas from the compressor stations to the new gas processing train; a pipeline system to return residue gas for reinjection and a 21 km additional Butane pipeline to Sitra facility. The scope of this contract also includes modifications of the storage facilities in Sitra in order to accommodate additional production from the new gas processing train, it said. 

 

This project will also include a land reclamation phase and the installation of two additional storage tanks: 200,000bbls for Propane and 100,000bbls for Butane, together with ancillary equipment, it added. 

 

Earlier this year, Banagas had signed BGP Part 1 EPC contract with JGC Corporation, Japan, for the gas processing train for recovering high-value-added products (propane, butane, and naphtha) contained in the associated gas with a capacity of 350 million standard cubic feet per day. 

 

The agreement was signed by BNGEC chief executive Dr Shaikh Mohammed bin Khalifa Al Khalifa and JGC Gulf International president and CEO Yuji Tanaka.

 

The contract signing ceremony was held under the patronage of Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Bahrain’s Minister of Oil and the event was attended by Kiyoshi ASAKO, Ambassador of Japan in Bahrain and senior management from both companies. 

 

 

HE Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil, in his keynote address said: “This BNGEC expansion is another significant milestone for Bahrain in the energy sector, and we are confident that JGC Gulf International will be able to deliver this project on time and within the allotted budget.” 

 

Commenting on the signing Dr Dhafer Al Jalahma, chairman of BNGEC and acting chief executive of nogaholding said: “Once BGP is completed, the combined capacity of BNGEC and Bahrain National Gas Company (Banagas) is expected to increase to 653 million standard cubic feet per day, which will not only bolster gas processing capacity but will contribute significantly to boosting Bahrain’s economy in the long run.” –TradeArabia News Service