meed-logo

line1 line2 line3
SIGN IN / REGISTER

Bahrain charts pathway to net-zero future

8 November 2023

The rebranding of state oil and gas holding company Nogaholding to Bapco Energies in May was the first overhaul made by Bahrain in a long, phased campaign to achieve net-zero emissions.

As a country that produces just 200,000 barrels a day (b/d) of oil and is almost solely dependent on its neighbour Saudi Arabia for oil and gas supplies, attaining net-zero emissions might be easier and quicker for Bahrain than for its hydrocarbons-heavy Gulf peers.

Bahrain appears to be aware of this potential and has been focusing its efforts on curating a programme to become net-zero by 2060. It has brought on board advisors such as Boston Consulting Group to devise a strategy to achieve its environmental goals.

Following the launch of the new brand identity, Bapco Energies published emissions-reduction targets in July, in one of the most detailed disclosures by any state energy enterprise in the GCC.

Using 2017 as a baseline year, Bapco Energies has committed to reducing absolute Scope 3 emissions in Bahrain by 30 per cent by 2035, and to reaching net-zero Scope 3 emissions by 2060.

In addition, Bapco Energies lists its Scope 1 and 2 net emissions intensity reduction targets, also using 2017 as a baseline, as 15 per cent by 2025, 25 per cent by 2030, 30 per cent by 2035, 50 per cent by 2040 and 75 per cent by 2050, to eventually reach net zero Scope 1 and 2 emissions by 2060.

Scope 1 and 2 emissions are directly related to the core operations of an energy-producing company. In contrast, Scope 3 refers to emissions for which the company is indirectly responsible – a critical measure in the fight against climate change.

Bapco Energies has made its Scope 1, 2 and 3 emissions targets public as part of a framework it has adopted to link its environmental sustainability efforts to its financing exercises. Standard Chartered Bank will support the financing framework.

Decarbonisation action

Similar to large-scale decarbonisation project investments made by Gulf national oil companies, Bapco Energies has initiated a carbon capture and storage (CCS) project estimated to be worth about $4bn, according to its CEO Mark Thomas. The project is expected to be able to sequester 10-12 million tonnes of carbon dioxide a year for at least 50 years.

The scope of the project involves sequestering the carbon dioxide emissions in a large gas reservoir in the Bahrain field, which is also known as the Awali field. The reservoir is big enough to sequester more than 550,000 million tonnes of carbon dioxide, according to Thomas.

The CCS project is bigger than any other project of its kind that has been announced, Thomas claimed in an interview with MEED.

“The good thing is that it is all onshore. Ten to 12 million tonnes of emissions are all within a 7 kilometre radius and the field where it will be stored is 10 kilometres away,” Thomas said.

“I have the space there,” he said. “The challenge is the technology and the cost. This is a very expensive project. We are looking for economies of scale and how we might stage it in a way that makes sense.

“We completed a very early feasibility study last year, in 2022,” he continued.

“We have subsequently engaged with experts in CCS and we expect that [a second] study will be done by mid-2023,” he said, adding that front-end engineering and design work for the project is expected to start before the end of this year.

Sitra refinery upgrade megaproject

Meanwhile, a $4.2bn project by Bahrain Petroleum Company (Bapco) to upgrade the Sitra refinery in Bahrain has made slow progress. The objective of the Bapco Modernisation Programme (BMP) is to boost the processing capacity of the country’s only oil refinery from 267,000 b/d to 380,000 b/d – a strategic target for Bahrain’s long-term downstream potential.

In February 2018, Bapco awarded the $4.2bn contract to perform engineering, procurement and construction (EPC) works to upgrade the Sitra refinery to a consortium led by France’s Technip Energies that includes Spain’s Tecnicas Reunidas and South Korea’s Samsung Engineering.

The project was originally expected to reach mechanical completion in 2023, with operations set to begin in 2024. MEED understands that Bapco will likely miss this commissioning schedule, however.

According to the latest update on EPC progress on the BMP, all of the catalysts required to start operating the newly-installed units have been delivered to the site, although the catalysts still need to be fully loaded into the units.

Upstream objectives

Despite its low oil production capacity, Bahrain is a key member of the Opec+ coalition of oil producers.

Bapco Upstream, the wholly-owned subsidiary of Bapco Energies, is striving to maintain, or even increase, its oil and gas production levels through capital expenditure on key projects.

Bapco Upstream, previously known as Tatweer Petroleum, is the sole operator of the onshore Bahrain field – the first oil field discovered in the Gulf region in 1932. The company produces an average of 42,400 b/d of crude oil and 1.67 billion cubic feet a day of non-associated gas from the Bahrain field.

This represents less than a quarter of the country’s oil output capacity, but is important to Manama as it is the only indigenous oil-producing asset and is key to meeting domestic oil demand.

Bapco Upstream also shares the offshore Abu Safah field, located in the Gulf waters between Bahrain and Saudi Arabia, with Saudi Aramco. Abu Safah contributes about 145,000 b/d to Bahrain’s oil production.

At present, the firm is pushing ahead with a phased field development project to install non-associated gas compressor facilities and remote gas dehydration units to maintain gas deliverability from the Bahrain field. Bapco Upstream is understood to be close to awarding a contract for EPC work on non-associated gas compressor facilities and associated works as part of this project.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11273443/main2024.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Emirates awards $5bn engineering complex deal

    18 May 2026

    Register for MEED’s 14-day trial access 

    Emirates Airline has awarded a AED19bn ($5bn) contract to build one of the world's largest engineering complexes in Dubai South.

    The contract was awarded to Beijing-headquartered China Railway Construction Corporation (CRCC).

    CRCC is being supported by French firm Artelia, as the project consultant.

    The complex will cover over 1 million square metres (sq m).

    It will comprise 77,000 sq m of dedicated workshop space for maintenance and repairs, 380,000 sq m of storage and logistics capacity, a 50,000 sq m administrative building for Emirates Engineering and 15,000 sq m of training facilities.

    It will be the world's only complex with a capacity to service 28 wide-body aircraft simultaneously.

    The airline officially broke ground on the project on 18 May. 

    The groundbreaking ceremony was attended by Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and CEO of Emirates Group; Tim Clark, president of Emirates Airline; Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South; and Dai Hegen, chairman of CRCC.

    The facility will enable large-scale retrofits, cabin redesigns and structural modifications to be performed in-house, thereby reducing turnaround times.

    The engineering complex is scheduled for completion in 2030 and will be located at Al-Maktoum International airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16895218/main.jpg
    Yasir Iqbal
  • Contractors submit King Salman Bay project interest

    18 May 2026

     

    Contractors submitted expressions of interest in April for a contract to undertake marine infrastructure works at King Salman Bay, on the Red Sea coast north of Jeddah.

    The scope includes dredging and earthworks, as well as quay wall and edge protection works spanning about 11 kilometres (km).

    The project client is gigaproject developer Red Sea Global (RSG).

    The invited firms include:

    • Archirodon (Greece)
    • Boskalis (Netherlands)
    • China Harbour Engineering Company (China)
    • Jan de Nul (Netherlands)
    • Modern Building Leaders (local)
    • Nesma & Partners (local)
    • NMDC Group (UAE)

    King Salman Bay is expected to be a waterfront development aimed at reshaping the city’s northern Red Sea frontage into a mixed-use destination anchored by public realm improvements and leisure-led development.

    The update follows RSG’s award of an estimated SR100m ($27m) contract to construct a solid waste management centre at its Red Sea Project. The scope includes four buildings: a material recycling facility, a transfer station, an administration building and a vehicle maintenance building.

    In October last year, MEED reported that RSG had secured a SR6.5bn ($1.7bn) credit facility to further develop Amaala, its luxury tourism destination on Saudi Arabia’s northwestern Red Sea coast.

    According to an official statement, “The funding is led by Riyad Bank as the sole underwriter, along with Saudi Investment Bank and Bank Al-Bilad as mandated lead arrangers.

    “The loan arrangement comprises a mix of conventional and Islamic financing and adheres to RSG’s Green Loan Framework, which was first established when it secured private funding from a consortium of four banks for the Red Sea destination in 2021,” the statement added.

    The announcement followed RSG’s opening of its first properties for sale at Amaala, including branded residential communities and a five-bedroom villa on a private island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16894122/main.jpg
    Yasir Iqbal
  • Saudi Arabia tenders Mecca metro design

    18 May 2026

     

    The Royal Commission for Makkah City & Holy Sites (RCMC) has tendered a contract inviting firms to undertake initial design studies for its long-planned metro network in the holy city.

    The scope includes the review of existing studies, preparing a concept design, land acquisition studies, future phases integration concept and other related studies.

    The notice was issued earlier this month, with a submission deadline of 5 August.

    The latest development follows RCMC’s invitation to contractors to attend an early market engagement meeting for the project in September last year, as MEED reported.

    In an explanatory document inviting companies to attend the event, the RCMC’s General Transport Centre said it was seeking to gauge market interest in the multibillion-dollar project and obtain feedback on its proposed procurement approach.

    MEED exclusively reported in June last year that the project was restarting. Current plans envisage a four-line network, named lines A-D, with 89 stations and three depots, to be implemented over three phases between 2032 and 2045.

    Project scope

    Stage 1 focuses on lines B and C, involving 2.4 kilometres of tunnelling under the Masar project and integration with the existing Mashaer line.

    The network will run just over 62km and comprise 31 stations, 21 of which will be underground, including three iconic stations. A total of 19.5km will run through tunnels, while 41.2km will be elevated, with the remainder at grade.

    The 66 required trainsets are projected to provide a daily passenger capacity of about 450,000, equating to annual ridership of 171 million.

    The 84.7km-long second phase, due to be operational by 2038, will extend the two lines towards the outskirts of Mecca and includes construction of the initial inner and central segments of lines A and D.

    Comprising 61.1km elevated and 18.6km underground, Phase 2 is planned to add 45 stations serving the two new lines, as well as two depots and a potential interconnection with the planned Saudi Landbridge. The 59 trainsets for Phase 2 will increase the network’s projected total annual passenger capacity to more than 500 million.

    Phase 3 covers the elevated 36km extension of lines A and D and involves procurement of a further 72 trainsets, increasing the network’s ultimate passenger capacity to 1.2 million daily and 642 million annually by completion in 2045.

    Associated development

    The metro plan also envisages several transit-oriented developments (TODs) at different points on the route. These will typically comprise commercial, residential and retail elements to maximise the investment case.

    The client’s proposed procurement approach involves three distinct packages: civil and systems works, TODs, and operations and maintenance.

    The initial concept calls for some of the project to be delivered on a public-private partnership (PPP) basis, wherein the private sector, through special purpose vehicles, will part-finance, build, operate and then transfer commercially viable elements of the scheme.

    The then-called Mecca Mass Rail Transit Company (MMRTC) first launched the metro project in 2013; however, the scheme has faltered for more than a decade due to funding issues, land acquisition challenges and scope changes.

    The relaunch of the procurement process raises hopes that the project will now come to fruition, although it is likely to be at least 18 months before any definitive works are expected to start.

    Mecca is home to Saudi Arabia’s first metro, the nine-station, 18km-long Mashaer line, which opened in 2010. It operates only seven days a year during Hajj, but carries more than 2 million pilgrims during that time.

    Some 30 million pilgrims visit the city each year, with this number set to grow. The presence of a known, quantifiable and growing demand base will help facilitate the use of a PPP mechanism should the framework be adopted.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16893520/main.jpg
    Yasir Iqbal
  • Montage launches Ras El-Hekma hotel and residences project

    18 May 2026

    Abu Dhabi-listed Modon Holding has partnered with US-based hotel operator Montage Hotels & Resorts to launch Montage Ras El-Hekma, a new project within the Ras El-Hekma master development on Egypt’s Mediterranean coast.

    The Montage development will be situated in Wadi Yemm, the first of 17 planned precincts to move into active delivery.

    Wadi Yemm is a mixed-use cultural and hospitality district, anchored by the Ras El-Hekma Lighthouse and a 10,000-seat amphitheatre designed to host cultural and entertainment programming.

    Montage Ras El-Hekma is expected to feature approximately 200 guestrooms and suites, along with 96 branded villas.

    The villas will range from three to six bedrooms and will mark the first branded residences available for purchase at Ras El-Hekma, according to Modon.

    No construction budget or project handover timeline was provided.

    Ras El-Hekma is on a spur of land on Egypt’s northern Mediterranean coastline, about 240 kilometres west of Alexandria.

    Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project in 2024.

    Modon will act as the master developer for the entire development, covering more than 170 million sq m. 

    Modon Holding will develop the first phase of the project, which will cover 50 million sq m.

    The remaining 120 million sq m will be developed in partnership with private developers under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon Holding.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16893415/main.jpg
    Yasir Iqbal
  • Bahrain completes repairs to chemical plant after Iran strike

    18 May 2026

    Repair and remediation work has been completed at the Gulf Petrochemical Industries Company (GPIC) facility in Bahrain, according to a statement from the country’s Ministry of Interior.

    The repairs and clean-up operation were focused on damage caused by an Iranian drone strike on 5 April, the ministry said.

    It also said that the strike was an act of aggression that constituted a war crime.

    Prior to the repair works, an Iranian drone was lodged inside an ammonia storage tank at the facility, which had become a “grave and ongoing risk”, according to the ministry statement.

    The ministry noted that, were it not for the swift pre-emptive measures taken by Bahrain’s government as part of its broader efforts to strengthen civil protection, the consequences could have been catastrophic.

    It said that an ammonia leak would have spread across several kilometres, causing mass casualties and threatening the lives of civilians in the surrounding areas.

    The ministry commended GPIC for its proactive decision to drain the ammonia tank prior to intervention — a critical step given the tank’s location in a densely populated area.

    All residents evacuated from the surrounding area have now returned to their homes.

    The evacuation, which covered a two-kilometre radius, was carried out on a voluntary basis, with temporary alternative housing provided as a precautionary measure.

    GPIC manufactures ammonia, methanol and urea.

    It operates as a joint venture equally owned by Bapco Energies of Bahrain, Saudi Basic Industries Corporation (Sabic) of Saudi Arabia and Kuwait’s Petrochemical Industries Company (PIC).

    The facility that was attacked is located in the Sitra region of Bahrain.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16892300/main.png
    Wil Crisp