Gulf Petrochemical Industries Company (GPIC), one of the major contributors to Bahrain’s economy, is considering capacity expansions, its general manager said.

Abdul Rahman Jawahery said GPIC had identified a number of potential expansion projects, which are now under the active consideration of GPIC shareholders and its board.
“At present GPIC is following with interest developments with regard to the supply of natural gas to Bahrain,” he said.
“As in the past, GPIC will seek its own financing arrangements with local and international financial institutions for any expansion project.”
The company has not had a capacity expansion since 1998 when a 600,000 tonnes per year (tpy) granular urea project was added downstream of the ammonia plant.
Total production in 2005 looked set to overtake the 2004 level. According to figures supplied by GPIC, total production for the first 10 months of 2005 was 899,632 tonnes against 1.04 million tonnes for the whole of 2004.
The ammonia output in 2004 and the first 10 months of 2005 was 89,998 tonnes and 80,174 tonnes respectively; urea output 547,350 tonnes and 482,479 tonnes respectively and methanol output 304,223 tonnes and 336,080 tonnes respectively.
For the 10-month period in 2005, GPIC had revenues of BD75.26 million against BD75.65 million for full-year 2004.
GPIC products go worldwide. Its urea is a major import of Australia and the US, while its methanol is sold in all the major international markets.
“GPIC has successfully entered the fertiliser markets in Australia and New Zealand through close cooperation with its shareholders,” said Jawahery.
“Exports to Southern Africa are also in the offing in addition to our established presence in all the other major fertiliser markets. In 2005 exports were characterised by steady demand and good prices and the situation was foreseen to continue into 2006.”
GPIC’s ammonia and urea are marketed by Petrochemical Industries Corporation of Kuwait while its methanol is marketed by Sabic.  Both PIC and Sabic partner the Government of Bahrain as owners of GPIC and all have equal shares. The company’s board is chaired by Shaikh Isa bin Ali Al Khalifa, advisor to the Prime Minister for industrial and oil affairs.
The GPIC complex was built in Sitra on a reclaimed area of 60 hectares. In addition to the factories, GPIC has utilities plants, maintenance workshops, offices, stores and laboratories. The company employs 550 people, 80 per cent of whom are Bahrainis.
The company is a significant contributor to Bahrain’s economy and has seen its cumulative profits exceeding BD193 million since its establishment.
“The company’s activities, represented by natural gas purchases, employment and training of Bahraini nationals, utilisation of local contractors, power consumption and other financial and commercial operations have injected BD400 million annually into the national economy,” said Jawahery.
The company was recently awarded the Sir George Earle Trophy from the Royal Society for the Prevention of Accidents (RoSPA) for outstanding performance in health and safety.
Describing the development as a ‘unique and exceptional achievement,’ Shaikh Isa observed that it was for the very first time in its 50-odd years of history that the trophy was presented outside the UK.
“For a relatively small petrochemical company in the Kingdom of Bahrain to achieve this honour in competition with the rest of the industrial world, is indeed remarkable,” he said.
“GPIC has always displayed a passion for safety and health in all its operations and activities.
“The fact that the safety message has been carried beyond the boundaries of the company’s complex to include all staff members, their families and even contractor personnel, speaks for itself. It shows a level of commitment to the well-being and protection of people that goes well beyond the normal expectation.
“It is also a reflection of the advances made in industry in the Kingdom of Bahrain in general. Winning this kind of performance on the international stage is only possible as a result of the constant dedication and diligence of the workforce, the unlimited support of the shareholders and the commitment of the leadership of Bahrain, to build a diversified industrial base in the kingdom that is not only efficient and profitable but also caring and responsible.”
GPIC’s management systems are certified to the ISO-9001:2000 level; in environmental standards it is certified to ISO 14001 and in occupational health and safety management systems OHSAS-18001:1999. It also has certification from the American Occupational Health and Safety Administration (Osha) process safety management and from the International Ships and Port Facilities Security (ISPS) code.
“GPIC is considered a role model in environmental protection.  A fish farm, a bird sanctuary and palm plantations created at the GPIC site show that its operations are eco friendly. The company has introduced environmental research grants to secondary schools in Bahrain and organises lectures on the environment, occupational health and safety management systems,” Jawahery said. 
2005 was a remarkable year in terms of achievements and recognition. GPIC started the year by being awarded His Highness Shaikh Abdulla bin Hamad Al-Khalifa’s trophy for its environmental work and enhancements. Later in the year, it had its methanol plant performance benchmarked by John Matthey, an independent international organisation, as the world’s best. The company also received the late Lebanese Prime Minister Rafik Hariri’s award for the best maintained management system in the Arab world and recently the GCC Council of Ministers for Labour and Social Affairs bestowed on the company the GCC Bahrainisation award for excellence in training and developing its nationals.
In terms of operational performance, GPIC successfully executed a comprehensive and safe planned turnaround in March/April.
“Our process plants have produced consistently at above-rated capacity for 2005 and additionally we have been able to export all our production, safely, successfully and on time,” observed Jawahery.
The official said international prices for GPIC products were good throughout the year and similar market conditions had been foreseen to continue into 2006.