zoomImage Courtesy: Teekay

A consortium composed of Teekay LNG Partners L.P., Samsung C&T and Gulf Investment Corporation (GIC) executed on Wednesday with the Government of the Kingdom of Bahrain the project agreements for the development of an LNG receiving and regasification terminal in Bahrain.

The project, to be developed on a BOOT (build, own, operate, transfer) basis, will be located in Hidd Industrial area of Bahrain and will help the Kingdom meet the increasing demand for gas supplies to satisfy its industrial and urban development.

The Oil and Gas Holding Company (Nogaholding) awarded the project to Teekay LNG-Samsung-GIC consortium following an international competitive tendering process.

The project will be owned and operated through a new joint venture, Bahrain LNG W.L.L., owned by Nogaholding (30%), Teekay LNG (30%), Samsung (20%) and GIC (20%) and is the first of its kind in the Middle East to be developed on a public-private partnership (PPP) scheme.

The project will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility. The project will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a twenty-year agreement commencing on 15 July 2018.

Teekay LNG-Samsung-GIC selected GS Engineering & Construction as the EPC contractor of the project. Teekay LNG will supply the FSU vessel which will be modified specifically for this project, through a twenty (20) year time-charter to the joint venture.

The project, not including the FSU to be time chartered from Teekay LNG, project management and development, financing and other costs, is expected to cost approximately $655 million, which will be funded through a combination of equity capital and project finance through a consortium of regional and international banks.

“We are thrilled to partner with GIC, who has experience with infrastructure project development throughout the Gulf region, and with Samsung, who has developed LNG regasification terminals elsewhere in the world”, commented Peter Evensen, Teekay LNG’s Chief Executive Officer.

“In addition, we are excited to be able to dedicate and long-term charter one of our LNG carriers.”