Energy
From The Report: Bahrain 2017
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Although its revenues from oil and gas have fallen, the government of Bahrain is ploughing new investment into the kingdom’s energy sector in the hopes that the broader economy will reap the benefits in the years to come. This counter-cyclical spending is designed to allow a significant increase in refinery capacity and a more secure supply of fuel for the country’s aluminium smelters, petrochemical factories, power stations and desalination plants. At the same time, the government has taken historic steps to reduce subsidies on fuel, food and utilities that have reduced its expenditure but increased the cost of living for its citizens. Bahrain, which has been a net importer of crude oil for many years, is reshaping the unspoken social contract between monarchs and citizens that characterises the economies of its oil-exporting GCC neighbours. The country’s natural resources may help fuel industries that employ many Bahrainis, but the trickle-down effect of oil wealth will no longer manifest itself in highly subsidised petrol, groceries or utility bills.

This chapter contains an interview with Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil.

Articles from this Chapter

Overview

Drop in the barrel: Lower oil prices lead to sector innovation and investment to secure fiscal and energy needs
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Although its revenues from oil and gas have fallen, the government of Bahrain is ploughing new investment into the kingdom’s energy sector in the hopes that the broader economy will reap the benefits in the years to come. This counter-cyclical spending is designed to allow a significant increase in refinery capacity and a more secure supply of fuel for the country’s aluminium smelters, petrochemical factories, power stations and desalination plants. At the same time, the government has…

Interview

Project planning: Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil, on taking the leading steps into a new oil economy
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Interview:Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa What are the major projects going forward this year, and how is Bahrain set apart from others in the region making similar investments? SHEIKH MOHAMMED BIN KHALIFA BIN AHMED AL KHALIFA: Bahrain is continuing to play an important energy role in the region. The Bapco Modernisation Programme (BMP) is one example, designed to optimise the refinery’s configuration in order to keep it competitive beyond 2020. The BMP will integrate several…

Analysis

Refining operations: A new round of upgrades is planned for the Sitra refinery
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In May 2016 nogaholding, the investment arm of the National Oil and Gas Authority (NOGA), signed a $570m credit agreement allowing it to move ahead with a $5bn overhaul of the country’s existing refining facility. This move would boost output capacity to 360,000 barrels per day (bpd), up from the 276,676 bpd produced in 2015. Bids were submitted in October 2016 for the engineering, procurement and construction (EPC) of the new refinery, with the contract set to be awarded in the second…

Analysis

Building supply: A new gas terminal is set to meet domestic energy demand
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With significant expansion projects in both aluminium and power generation slated for between 2017 and 2020, Bahrain is investing in a new liquefied natural gas (LNG) import terminal that will offer these gas-intensive enterprises greater security of feedstock supply. Although domestic production of natural and associated gas increased by some 3.2% in 2015, imports will enable more rapid expansion of industry and allow the kingdom to serve the water and electricity needs of its growing population. NEW…