Adnoc to supply first cargo for LNG terminal

The country’s liquefied natural gas (LNG) terminal will be supplied with its first cargo from Abu Dhabi National Oil Company (Adnoc), the Minister of Oil and Chairman of the board of directors in National Oil and Gas Authority (NOGA) Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa has said. He said that negotiations with the Abu Dhabi National Oil Company have come to a conclusion as the company offered “the best price”.

“We have an LNG terminal in Bahrain that is going to be commissioned next year and our first commissioning cargo is going to be imported from Adnoc, they gave us the best price,” he said. “We’re trying to develop our indigenous gas, we have new discoveries. We’re working on the geology, we’re drilling wells onshore.”

He added that no other cargoes have been awarded yet. “We still intend to buy LNG only from the spot market. The spot seems like the best option but obviously we are looking at other strategies,” he said.

With a capacity of 0.8 Bcf/d, the LNG project is situated at Khalifa bin Salman Port facility. 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,” the minister said.