The National Oil and Gas Authority (Noga) has signed a memorandum of understanding with Shell International Gas and Power Limited to explore the feasibility of various gas initiatives in the kingdom.

Oil and Gas Affairs Minister and Noga chairman Dr Abdul-Hussain bin Ali Mirza signed the MoU with Shell Gas and Power vice-president Middle East-Gulf Martin Trachsel at the Noga headquarters.
The minister describes the signing as a “historical milestone that brings us closer to a major international oil company that has a long presence in our area and is known for its technical prominence”.
The MoU covers co-operation in a number of possible projects, such as:
• Developing a liquefied natural gas (LNG) import project in Bahrain;
• Establishing a joint venture company between Noga and Shell to develop a gas pipeline import project to Bahrain;
• Exploration for deep gas zones in Bahrain;
• Gasification of heavy oil and/or refinery residues in Bahrain.
“Notwithstanding the current financial and economic crisis and depressed energy demand picture, global gas consumption is expected to grow by approximately two per cent a year over the next 25 years, and most of the growth in demand, is coming from the power generation sector,” says Dr Mirza.
“This gas, whether in gaseous form or as LNG, will have to cross borders as most countries become increasingly dependent on imports.
Bahrain is no exception to this.
“Although Bahrain is a producer of gas, the growth in domestic demand has triggered an active exploration programme in all areas – offshore and onshore – in addition to our plan to increase gas recovery from our Bahrain Field and to import gas from other countries.”
Shell has undoubtedly the largest and most geographically diverse LNG portfolio among the major international energy companies which provides Bahrain with access to experience in every aspect of the business, says Dr Mirza.
“Shell has operated for over a hundred years in practically every country in the Middle East region, besides Bahrain,” he says.
“On the other hand, Bahrain’s gas market is mature and growing rapidly. Our first gas utilisation project goes back to 1938 when the natural gas from Arab Zones was used for gas injection to improve production.
“We have more than half century of experience in using natural gas for power generation. Bapco refinery and Alba were the first industries that used gas as fuel.”
Today, total gas consumption in Bahrain is around 175,000 equivalent barrels of oil, says Dr Mirza.
“Bahrain therefore can bring a number of strengths to this partnership,” he adds.
“Firstly and foremostly, Bahrain brings a talented and well educated workforce that is committed to make every project they are involved in a success.
“Secondly, Bahrain brings the commitment of the political leadership of the country to the development of the nation through continuing economic growth.”