Bahrain's oil, gas sector: Over 90 years of sustainable legacy and a story of national determination and achievement
Manama, Dec. 19 (BNA): The oil and gas sector stands as a cornerstone of Bahrain’s economy, contributing 14.5% to the Kingdom’s GDP in the first half of 2024, according to a report by the Ministry of Finance and National Economy. This critical sector plays a vital role in Bahrain's comprehensive development under the leadership of His Majesty King Hamad bin Isa Al Khalifa and the support of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister.
Bahrain’s oil and gas industry dates back to 1925 when the first oil exploration license was granted. In 1932, Bahrain became the first country in the region to discover oil at Jabal Dukhan, a milestone that transformed the nation and the Gulf region. The Kingdom exported its first crude oil shipment to Japan in 1934, marking the beginning of its journey as a regional energy leader.
The 1940s saw the construction of the world’s longest submarine oil pipeline, linking Bahrain and Saudi Arabia. This vital infrastructure, upgraded in 2018, now has a capacity of 400,000 barrels per day. Established in 1936, the Bapco refinery started with a capacity of 10,000 barrels per day and has undergone several expansions, with plans to reach 400,000 barrels per day under its ongoing modernisation project.
Since the discovery of natural gas in 1948, Bahrain has leveraged this resource to fuel industrial growth. The Bahrain National Gas Company (Banagas), established in 1979, played a key role, exporting its first shipment of butane in 1980. In 2019, a third gas plant was inaugurated, processing an additional 350 million cubic feet per day, underscoring Bahrain's commitment to energy efficiency and sustainability.
In 1979, Bahrain partnered with Saudi Arabia and Kuwait to establish the Gulf Petrochemical Industries Company (GPIC), using natural gas to produce ammonia, urea, and methanol. Subsequent initiatives include the founding of Tatweer Petroleum in 2009, responsible for exploration and production, and Bahrain LNG in 2015 to ensure a steady gas supply during peak demand periods.
In 2023, Bahrain launched Bapco Energies, rebranding the Oil and Gas Holding Company under the leadership of His Highness Shaikh Nasser bin Hamad Al Khalifa. The initiative, focused on energy transformation under the slogan "Energy for Generations to Come," marked a new chapter for Bahrain’s energy sector.
The Bahrain Modernisation Project, the largest strategic initiative in the Kingdom’s history, includes 15 substations and 21 new processing units, boosting refining capacity to 400,000 barrels per day. This project not only enhances Bahrain’s energy capabilities but also strengthens its economy and creates new job opportunities for citizens.
Bahrain’s oil and gas sector continues to evolve, balancing sustainability, advanced technology, and strategic investments to maintain its pivotal role in the Kingdom’s economic growth and development.
