H.E. Dr. Abdul Hussain bin Ali Mirza, Minister of Energy, visited the Bahrain National Gas Company (Banagas), where he was greeted by board members of the Banagas and Banagas Expansion as well as senior officials of the National Oil and Gas Authority (NOGA). The Minister congratulated all the Banagas officials and employees on the occasion of marking 35 years of the company’s establishment. He discussed with the board members about developments in the energy sector, and shared views regarding the development work and future perspectives for the oil and gas sector in the Kingdom, and reviewed a number of the key aspects in the gas industry that required more attention and challenges it faced in the coming years. The Minister expressed his happiness and gratitude to the wise leadership, praising the strong ongoing support to the sector in order to enhance its contribution in promoting the march of national economy.

The officials briefed H.E. Dr Mirza about the progress in the Banagas expansion project, which included the establishment of a new compression station, with complete infrastructure and delivery pipeline, as well as the new explosion-proof CPU gas control unit, which had taken 25 months to complete. The plant began operating in October 2013 to coincide with the commissioning of the explosion-proof control room. A new compression station was designed to accommodate 60 million cubic feet of associated gas from refinery operations and gas mix at a cost of $ 42.4 million. The Minister was also briefed on the work of US$15.42 million worth engineering, procurement and construction (EPC) project. Japan’s JGC Gulf International is the prime contractor for both the projects.

The entire work was completed successfully commissioned for gas manufacture and improved propane extraction. The project was completed successfully without any lost time incidents.

The Minister was also briefed on the key achievements of the company, the most important being the new expansions, training and development programs, which emphasized Bahrainisation in managerial and leadership positions. H.E. Dr. Mirza praised the efforts by the board of directors and the executive management in developing and implementing a clear strategy for the company and expressed happiness in the future plans. He praised the efforts of the Board and the company employees in advancing the national economy.

On the sidelines of the visit, H.E. Dr. Mirza visited an exhibition in connection with the annual Banagas Safety, Health and Environment Week, where he look at the exhibits. The company highlighted through the event, the importance of efficiency and the company’s annual program, which included beneficial events and competitions, which spread important information and created awareness about safety, health and environment, with the participation of a number of Ministries and government bodies, including the Ministry of Interior represented by the General Directorate of Traffic, General Directorate of Civil Defence, Ministry of Health, Electricity and Water Authority, General Authority for the Protection of Marine Resources, Environment and Wildlife, Al Areen Wildlife Reserve and a number of local businesses with the latest expertise, equipment. A number of awareness materials relating to safety, health and environmental matters were on display.

The Minister appreciated the efforts put in for the preparations of Safety, Health and Environment Week this year. He praised the various achievements of the company in the field of safety, particularly, the oil and gas sector excellence award it received from the Royal Society for the Prevention of Accidents (RoSPA) and numerous other international awards in the field of safety, health and the environment from prestigious organizations such as British Safety Council, American Gas Association and United States National Safety Council. He expressed pride at the Banagas achievements that reflected the prestigious status enjoyed by Bahraini companies locally, regionally and globally. He also praised the efforts of the company employees, wishing them happiness and further progress and prosperity.

Banagas is a Bahraini shareholding company, with 75% shares owned by the Government of Bahrain and the remaining 12.5% owned by Chevron Bahrain company and another 12.5% owned by Boubyan Petrochemical after buying the share of the Arab Petroleum Investments Corporation (Apicorp) in September 2011.

Banagas was established under the key objectives of processing and marketing large quantities of associated gas extracted from the Bahrain Oil Field into marketable products, such as propane, butane and naphtha, which are exported to various countries around the world, and provide surplus gas to local industries, as well as provide employment and training opportunities to Bahraini nationals.

Today the company has more than 450 employees, including 92% Bahraini nationals.

The Banagas factory was officially opened on December 17, 1979, and the first shipment of products was in early 1980. The company exports propane, butane and naphtha products to different markets in the world, while surplus gas, mainly of methane and ethane, are send to Aluminium Bahrain, Bapco, Refinery and the Riffa Power Station.

Over the years, the Banagas plant capacity increased from the original 110 million standard cubic feet per day (MMSCFD) to 170 MMSCFD. In 1988 a $ 75 million plant expansion project was launched by the Government of Bahrain to raise the manufacturing capacity to 280 MMSCFD. The project was commissioned in 1990.

Another compressor station was constructed in 2003 as part of the Project to process additional quantities of associated gas, as well as Propane and Butane-rich refinery off gas under an agreement with the Bahrain Petroleum Company (Bapco). Banagas and Bapco signed a two-phase agreement with regard to the additional quantities of gas. The first phase of the agreement was signed in 2005 the second phase agreement was signed in 2008.

In 2008, the Project was converted into an independent company, the Bahrain National Gas Expansion Company S.P.C., solely owned by the Oil and Gas Holding Company (nogaholding). The Expansion Company is operated and managed by BANAGAS under a Management and Operating Agreement.

In September 2011, Banagas signed an engineering, procurement and construction (EPC) agreement with JGC Gulf International Company Limited for the establishment of a new gas compression, including gas collection and transmission lines. It was commissioned in October 2013 with the provision of future capacity to handle up to 60 MMSCFD.

In 1993, Banagas embarked on a program to enhance its own quality assurance so that it complies with international quality standard (ISO 9002). The company obtained a quality certification from the British Standards (BSI) certification.

In 2003, Banagas was awarded the ISO 9001: 2000 Quality Management Systems certification.

In 2011, the company was awarded ISO 18001:2007 Health & Safety Management Systems (OHSAS) certification.

In 2012, Banagas won the ISO 14001: 2004 Environmental Management Systems certification.

The Company’s major contribution to the national economy was recognised in 1999 when it was honoured with ‘The Prime Minister’s Award for Excellence in Industry’ in its inaugural year. This all-encompassing award measures a company’s achievements in increasing employment of nationals, providing appropriate training and development programmes, utilising locally sourced raw materials, export growth, participation in international promotions and involvement in local community activities.

With its continuing high productivity levels, the company has been able to contribute significantly to the annual national revenue. Its outstanding achievements in the field of occupational safety has won it global recognition and placed Banagas among the most successful industrial projects set up by the Government of Bahrain to ensure the prosperity of the people of Bahrain.