Following a series of expansions over more than 25 years, Bahrain National Gas Company (Banagas) is today one of the leading industrial establishments in the Arabian Gulf, contributing substantially to the national economy and presenting a high level of Bahrainisation of the workforce.

Banagas’ achievements also include high standards of production and successes in the fields of safety and the environment.
The company’s plant now utilises an average of 280 million standard cubic feet per day (mmscfd) of associated gas annually, from which is produced 3,000 barrels per day (bpd) of propane, 2,700 bpd of butane and 4,500 bpd of naphtha.
A quantity of methane-rich residual gas is piped to Aluminium Bahrain (Alba) for use as fuel for its turbines. Earlier, the gas was supplied to Alba from Bahrain’s Khuff gas field, a non-associated source of gas, but with the input from Banagas, the Khuff gas can now be conserved for other, more beneficial purposes. Over time the residue gas was also delivered to the Bapco Refinery and to Rifaa Power Station.
All the propane and butane is exported, while naphtha is delivered to the Bapco Refinery for eventual export.
Banagas is also recovering some 1,000 bpd of liquefied petroleum gas (LPG) from off-gas piped from the Bapco Refinery.
Dr Mohammed bin Khalifa Al Khalifa, Banagas general manager, said the figures made the Government of Bahrain very proud of its first post-Independence hydrocarbons-related industry. He added that the performance reflected a determined drive for growth and prosperity for the people of Bahrain whilst meeting shareholders’ expectations.
Banagas is 75 per cent owned by the Bahraini Government and 12.5 per cent each by Caltex Bahrain and the Arab Petroleum Investment Corporation.
The company was formed with the primary objectives of processing associated gas into marketable products, supplying residue gas for local industrial use and providing employment and training opportunities to Bahrainis.
The company employs 380 people, 93 per cent of whom are Bahrainis.
The plant’s facilities were officially inaugurated on December 17, 1979 and the first shipment was made in early 1980. Plant capacity at the time of inauguration was 110 mmscfd of associated gas, enabling it to produce 2,900 bpd of propane, 2,400 bpd of butane and 3,600 bpd of naphtha with 85 mmscfd of methane-rich residual gas piped to Alba.  Japan Gasoline Corporation (JGC) was awarded the contract to construct four gas compressor stations, a processing plant to recover the propane, butane and naphtha and a storage facility at Sitra.
There was a capacity expansion in 1985, increasing the plant’s capacity to 145 mmscfd, followed by debottlenecking in 1986, integral to which was the paralleling of the gas transmission lines from the compressor stations, the addition of three new columns and several new heat exchanger units at the Central Gas Plant and the enlarging of the product transfer systems to the Sitra terminal. The debottlenecking was accomplished by JGC and helped raise capacity to some extent. Another major expansion was completed in 1990 at a cost of $74 million.  The expansion, which involved an increase in capacity from 170 mmscfd to 280 mmscfd, was undertaken by JGC. The project was implemented solely by the Bahraini government and involved the construction of two additional compressor stations, a new processing strain at the Central Gas Plant capable of handling 110 mmscfd of associated gas, a further expansion of the product transfer system and additional facilities for refrigeration and storage at Sitra.
Dr Al Khalifa stressed Banagas’ serious commitment to quality assurance and control 'so as to ensure full and consistent satisfaction of customer requirements whilst adhering to the highest international standards.'  In 1993 the company received the ISO 9002 certification for quality assurance from the British Standards Institute (BSI) and in 2003, it was awarded the ISO 9001:2000 accolade from the same organisation.  Dr Al Khalifa observed that since that time, continuous assessment by BSI ensured ongoing compliance with an enhancement of the required standards, such that by 2004 every section within the business enjoyed full accreditation.
In recent years, Banagas has pursued a continuous improvement strategy to ensure enhanced professionalism, productivity and profitability. Vital elements of the strategy are Key Performance Indicators and the Balanced Scorecard measurement and management system.
The company has also formulated stringent regulations for safe working procedures at all company facilities so as to safeguard both life and property. It follows closely the occupational health and safety requirements of the international gas industry as a whole.  Every new recruit goes through an induction course in safety awareness. There is a well-equipped fire-training centre. Operational readiness is created with regard to emergency flooding facilities on all storage tanks in case an emergency should arise. Dr Al Khalifa pointed out that the quality of Banagas’ fire fighting teams was 'second to none' considering that they were regularly successful at annual inter-company fire fighting competitions.
Stemming from the priority it accords to safety issues, the company holds monthly departmental meetings as well as management safety committee meetings to discuss, promote and improve safety standards. It also holds periodical competitions for which prizes are awarded.
Banagas is also proud of its environmental achievements.  Dr Al Khalifa recalled that in 1994 Banagas was the first company in Bahrain to eliminate the use of halon gas, used in fire extinguishing systems, replacing it with a more environmentally friendly product so as to protect the ozone layer in compliance with the Montreal Protocol to which Bahrain was a signatory. It has taken a series of measures to monitor raw materials and waste and to control emissions and noise.
One of the significant developments was receiving the Prime Minister’s Award for Excellence in Industry in 1999. Strict criteria were used for granting the award including productivity, export, industrial safety and community support.