Gazprom has signed an MoU with Bahrain’s NOGA National Oil and Gas Authority to supply the small Gulf island state with liquefied natural gas, it emerged yesterday, as President Putin prepared to meet with King Hamad Al Khalifa in Moscow. On the eve of the meeting, the Kremlin released papers to the press showing that Russia’s state-run Rosgeologiya had also agreed to strengthen their partnership in the field of oil and gas preparation.
“Co-operation in the energy sector is of mutual interest,” the documents state.
Gazprom is currently developing its LNG sales and transportation and already supplies LNG to more than 10 countries including China, India, the UK and the UAE. In the meantime Novatek, Total, China’s CNPC and its Silk Road Fund have so far invested $18.5bn in the development of the massive Yamal LNG project inside the Arctic Circle, which, according to Novatek CEO Leonid Mikhelson earlier this week, is 76% complete and is on schedule to begin production some time next year.
Although it was the location for the first oil discovery on the Arabian Peninsula, Bahrain for its part now only produces a modest 48,000 bpd from its only onshore oilfield and most of its hydrocarbon revenues come from its share of the Abu Safah offshore field which is controlled by Saudi Arabia. It also holds around 0.2% of the world’s gas reserves which the current rate of extraction expected to run out in less than 30 years. All its gas production goes to meet domestic demand, and it is now looking to develop new sources of alternative energy, especially solar.