ADNOC set to supply first cargo into new Bahrain LNG terminal

MANAMA: Abu Dhabi National Oil Company (ADNOC) will supply the first cargo into Bahrain’s new floating LNG import and re-gasification terminal in February or March, said Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa.

“The commissioning cargo for Bahrain LNG will come from ADNOC. They offered the best price for Bahrain’s commissioning cargo,” Shaikh Mohammed said on the sidelines of the ADIPEC conference in Abu Dhabi, according to a report on S&P Global Platts.

The Bahrain LNG project, which has a capacity of 800m standard cubic feet per day, lies within the Khalifa Bin Salman Port facility.

The country currently consumes about 1.5bn standard cubic feet per day, all sourced domestically.

“We still intend to buy LNG only from spot market... Spot seems like the best option but obviously we are looking at other strategies,” the minister said, adding that he had not awarded any other cargoes yet.

Nogaholding, the investment arm of Bahrain’s National Oil and Gas Authority, one of the owners of the Bahrain LNG project, has said that all cargoes will be bought from the spot market and not on term contracts.

“The Bahrain LNG project is financed through a combination of debt and equity on a 75:25 debt to equity ratio. There have been discussions about potentially connecting to the gas grids of GCC countries,” Shaikh Mohammed said.

Source: http://www.gdnonline.com/Details/430909