Teekay LNG Partners L.P. has announced that, acting as part of a consortium with Samsung C&T and Gulf Investment Corp. (GIC), it has executed project agreements with the Government of the Kingdom of Bahrain for the development of an LNG terminal. The terminal will be in the Hidd industrial area of Bahrain, and will have both regasification and liquefaction facilities. It will be developed on a BOOT (build, own, operate, transfer) basis.
The consortium was awarded the project by the Oil and Gas Holding Co. (Nogaholding). A new joint venture (JV), Bahrain LNG W.L.L., will own and operate the project. Nogaholding has a 30% share in the JV, whilst Teekay, Samsung and GIC have 30%, 20% and 20% shares, respectively.
The project will be the first public-private partnership (PPP) LNG scheme of its kind in the Middle East. It will operate and be owned under a 20 yr agreement, which will commence on 15 July 2018.
It will consist of the following: a floating storage unit (FSU); subsea gas pipelines that will stretch from the platform to the shore; an offshore LNG receiving jetty and breakwater and adjacent regasification platform; an onshore gas receiving facility; as well as an onshore nitrogen production facility. Overall, the project will have a total capacity of 800 million f3/d.
Teekay and Samsung chose GS Engineering & Construction to be the engineering, procurement and construction (EPC) contractor for the project. Teekay, meanwhile, will provide the specially modified FSU.
The estimated cost of the project, not including the FSU, is estimated to be approximately US$655 million. This will be provided through equity capital and project finance through a consortium of both international and regional banks.
Peter Evensen, the CEO of Teekay LNG, said: “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.
In addition, we are excited to be able to dedicate and long-term charter one of our LNG carriers.”
The CEO of Samsung, Mr. Shin Kim, added: “It is a great honour to have remarkable sponsorships with GIC, a leading investor with extensive experience and insight in the GCC region and also with Teekay LNG, a world class LNG shipping company with the highest technical expertise required for the project. We will do our best for the successful execution of the project based on solid collaboration with our partners.”
The CEO of GIC, Mr. Ibrahim AlQadhi, said: “GIC is proud to be a pioneer investor in GCC infrastructure projects through partnerships with world leading industry partners.
“Winning the LNG import terminal project reinforces GIC status as the largest private industrial investor in Bahrain and one of the largest private employers of Bahraini nationals.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/02122015/samsung-teekay-and-gic-win-contract-to-build-bahrain-lng-terminal-1710/