Pipeline Dubai reported that Bahrain and Saudi Arabia are discussing plans to reroute the proposed transit pipeline that will replace the existing subsea export link between the 2 Gulf kingdoms.
The new pipeline is expected to increase its transport capacity from 230,000 barrels per day to 350,000 barrels per day by 2011 in line with future expansions of Bapco’s refinery at Sitra.
Dr Abdulhussain Mirza chairman Oil & gas affairs minister and National Oil and Gas Authority said that Noga is now in discussions on the design and the route of the new pipeline currently under study. He said that “The new pipeline will take a different route from the existing line and avoid crowded areas in Bahrain.”
A potential new route will run directly from Abqaiq and south of the existing pipeline in Bahrain. The existing 114 kilometers pipeline runs from Abqaiq to Dhahran in Saudi Arabia which then extends to Bahrain. Construction of the 100 kilometers pipeline is expected to start by the end of the year after front end engineering and design contractor has been determined.
The Bahrain and Saudi Oil Pipeline Expansion project estimated to cost USD 350 million is expected to be completed by October 2010. Bahrain expects to steadily increase its own oil production and plans to reach 100,000 barrels per day in the next 20 years.
The non OPEC producer imports about 225,000 barrels per day of Arab Light crude oil from the offshore Abu Saafa field in Saudi Arabia in a joint Bahrain and Saudi Arabian crude oil production agreement.
The small Gulf state plans USD 2 billion expansion of its Sitra refinery to boost capacity to about 360,000 barrels per day beyond 2016 from 260,000 barrels per day now. The expansion depends on getting increased supplies from Saudi Arabia.
