Nicosia, Feb 3: The National Oil and Gas Authority (NOGA) of Bahrain and Shell International Gas and Power Limited have signed a memorandum of understanding (MOU) concerning the feasibility of various gas initiatives in the Kingdom.
Bahrain in recent years has experienced a sharp increase in natural gas consumption and has been exploring ways of meeting demand both through the development of the country's own gas resources and through imports.
The memorandum envisages that NOGA and Shell will review together a range of opportunities aiming at meeting Bahrain's growing gas requirements. The agreement covers both short-term gas supply solutions and potential longer-term strategic options for Bahrain, including liquefied natural gas and pipeline gas import projects.
Bahrain's Minister of Oil and Gas Dr Abdul-Hussain Ali Mirza, speaking after the signing said that in order to meet the kingdom''s strategic objectives, important energy resources, which include clean natural gas, would be required.
"We welcome", he said "this agreement with Shell, a top player in the global energy business, and look forward to taking this agreement forward in the context of strong and effective partnership".
For his part, Martin Trachsel, Vice President for Shell Gas and Power in the Middle East, said: "Shell is an industry leader in the global natural gas sector and is active throughout the Middle East. We are delighted that The National Oil and Gas Authority chose Shell as its partner. We hope that together we can develop new activities in the Kingdom, help meet growing energy demand and, in turn, support continued economic growth."
Under the terms of the MOU, a joint steering committee will be established to agree the scope of work for all activities under the memorandum.