As joint strategic energy partner, Noga and Bapco provided top-level support for the energy segment of Gulf Industry Fair (GIF) 2011, where their ongoing commitment to the development of Bahrain’s downstream industries was showcased.

They joined Bahrain-based strategic partners Aluminium Bahrain (Alba), Arab Shipbuiling and Repair Yard (Asry) and Majaal who underlined Bahrain’s vigour and determination to build the national economy and drive its industries to greater heights. Another strategic partner, British Offset, participated through its Riyadh office and stressed its own efforts to bring investments into Saudi Arabia. 

Noga stressed its commitment to the long-term development of the kingdom, its economy (through the government’s Economic Vision 2030) and community and to raising public awareness of national programmes to stimulate industrial growth.

Bapco is a prime national economic driver and growth catalyst for Bahrain’s economy and, more specifically, its industrial sector. Noga is pushing ahead with a number of significant upstream, midstream and downstream projects to secure the future of the country’s oil, gas and petrochemicals industry. 

These include a $350 million new crude oil pipeline from Saudi Arabia to Bahrain to deliver increased quantities of crude oil to the Bapco refinery. This project will replace the existing A-B pipeline which has served the country’s oil industry well for several decades.

Alba: pioneering maker of aluminium primary products

The new 114-km supply line will ensure that the Bapco refinery receives approximately 350,000 barrels per day of oil. Furthermore, the state-of-the-art pipeline will be routed away from inhabited areas.

Construction began in 2009 on a new Lube Base Oil Plant (LBOP), a joint venture between Bapco (27.5 per cent), nogaholding – a subsidiary of Noga – (27.5 per cent) and Neste Oil of Finland (45 per cent). When onstream in late 2011, the plant will take feedstock from the bottom of the hydrocracker unit to manufacture up to 420,000 tonnes per year of very high viscosity index (VHVI) Group III lubricant base oils, using catalytic iso-dewaxing technology from Chevron Lummus Global.

Upstream, Bahrain is pressing ahead with a project to boost oil and gas output to the long-term benefit of the kingdom’s economy.

Gasfield output is expected to increase from 1.7 billion cubic feet per day (bcfd) currently to 2.7 bcfd. It also aims to increase crude output from the field to 100,000 barrels per day (bpd) from 32,000 bpd in seven years, Dr Mirza said.

Bahrain is also pressing ahead with offshore exploration, with four blocks being developed by international players. Dr Mirza has said the future for heavy oil has come and now is the time for the Middle East to grasp this opportunity.

Asry: playing inspirational role

Alba, Gulf aluminium pioneer
Alba, a strategic partner at GIF, consistently ranks as one of the world’s largest, most modern aluminium smelters and is known for its technological strength and innovative policies. The company enforces strict environmental guidelines, maintains and excellent track record for safety and is widely regarded as one of the top 10 performers on a global scale.

Alba’s inception marked the beginning of Bahrain’s strategy to diversify its economic base and reduce its dependence on oil. The company has succeeded in meeting its objectives of providing valuable export earnings, developing the country’s resources and creating training and employment opportunities for a large number of Bahrainis. The company was incorporated in 1968 and its 120,000 tonnes per year (tpy) smelter officially began operations in 1971. Alba today produces more than 850,000 tpy of the highest-grade aluminium with products including standard and T-ingots, extrusion billets, rolling slab, propertzi ingots and molten aluminium. Around 45 per cent of its output is supplied to Bahrain’s downstream aluminium industry with the rest exported to regional and international customers in the Middle East, Europe, the Far East, Southeast Asia, Africa and North America.

The Alba plant comprises five reduction lines, three cast houses a dedicated carbon plant, a 600,000 tpy coke calcining plant, a water desalination plant, 11 fume treatment plants, a marine terminal and a 2,200 MW power plant consisting of four power stations.

The company, in a landmark move, held an IPO last year.

CEO Laurent Schmitt said Alba’s strategic support for Gulf Industry Fair demonstrated the company’s commitment to the stimulation of the downstream sector in Bahrain and further integration of the aluminium value chain in line with government objectives. (See also Regional News).

Asry: meeting challenges
The participation of Asry, one of the oldest ship repair yards in the Middle East, was inspirational and bestowed honour to Gulf Industry Fair. Asry has been meeting challenges head-on. In most of the Middle East as elsewhere the global economic recession brought a slowdown in activities. But Asry had a record year in the number of ships it repaired in 2008 and did even better in that regard in 2009, and had more ships for repairs in 2010.

It has taken steps to retain and expand its share of business. The company is expanding its facilities which will give the yard additional flexibility to accommodate more vessels for alongside repairs and to ease congestion on existing repair berths.

Asry is constructing a 1,380 m quay wall, providing enough water depth to receive 300,000 dwt vessels and building a 180 m berth. It is also constructing four tugs.

A new administrative block, part of the expansion project, has already been completed and the company plans to upgrade its workshop equipment with the use of the latest technology.

Chris Potter, chief executive of Asry, says the company is confident that the reputation it built over 33 years coupled with its continued investments in capacity and technical infrastructure would sustain the competitive advantage.

“We have managed successfully to secure a number of fleet agreements with new owners in the past two years which has resulted in some major repair works for the yard,” he said.

Majaal and British Offset
Strategic partners Majaal and British Offset were among the prominent exhibitors.

Majaal is the flagship project of First Bahrain, which offers small and medium enterprises (SMEs) a unique purpose-built full-service business incubator platform. First Bahrain general manager Amin Al Arrayed said GIF’s exhibitor and visitor profile matched the company’s target audience.

British Offset facilitates the entry of foreign investments into Saudi Arabia and is credited with having helped create sophisticated ventures in several fields including petrochemicals thanks to its influence with Saudi government agencies. The organisation made its third appearance at the fair and its Riyadh office manager Steve Kelly said it considered GIF a useful venue for contacts. (Stories on Majaal and British Offset appear separately in this feature).