Bahrain LNG has given GS Engineering & Construction, the project’s main contractor, a notice to proceed with the construction of the facilities, following the financial close reached in early December.
The construction is set to begin during January and it is expected to be ready to receive first LNG cargoes in early 2019, according to the project’s statement.
Bahrain LNG, a jointly owned by the Oil and Gas Holding Company (nogaholding) and a consortium consisting of Teekay LNG Partners, Gulf Investment Corporation (GIC) and Samsung C&T (Samsung), has completed the limited recourse financing for the LNG receiving and regasification terminal project in December.
A syndicate of nine international and regional banks is participating in the US$741 million loan which has a tenor of 20 years.
The LNG import terminal will be located offshore approximately 4 km east of the onshore receiving facility at the Khalifa Bin Salman port.
The project is being developed to supplement local gas production in Bahrain and ensure capacity to meet peak seasonal gas demand and industrial growth, according to Bahrain LNG.
The project will have a capacity of 800 million standard cubic feet per day and will be owned and, once completed in early 2019, operated under a twenty-year agreement. It will comprise a floating storage unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility.
Teekay LNG will supply the FSU, which will be modified specifically for this project, through a 20-year time-charter agreement.
LNG World News Staff