$350million Bahrain oil pipeline replacement project
Wed, 18 March 2009
THE GOVERNMENTS OF Bahrain and Saudi Arabia are understood to be planning to replace and expand the oil pipeline connecting the two countries by 2011, with costs expected to reach $350 million. Abdulkarim al-Sayed, chief executive of Bahrain Petroleum Co (Bapco), said the engineering design for the pipeline would be completed by the end of this year, and construction completed in 2011. Cost estimates of the 114-km long pipeline were preliminary, Mr al-Sayed said at an energy conference in Manama.
“It’s not final… it’s an order of magnitude. The engineering design that we’re doing between now and the end of the year will determine the price”, he said.
Bahrain currently imports some 230,000brl/d of oil from Saudi Arabia. The new pipeline will have a capacity of 350,000brl/d, and Bahrain plans a $ 2-billion expansion of its Sitra refinery, to boost capacity to about 360,000brl/d by 2016. The expansion depends on getting increased supplies from Saudi Arabia. “Most probably the pipeline will be there before the refinery capacity,” Mr al-Sayed said. “We have future plans for (added) refinery capacity.” The new pipeline may be re-routed from its current route, which runs from Abqaiq to Dhahran in Saudi Arabia and then on to Bahrain, to a potential new route that will run directly from Abqaiq, and south of the existing pipeline in Bahrain.
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