Transforming Bahrain’s Energy Sector
Bapco Energies and Bapco Refining have unveiled the Bapco Modernisation Project (BMP), a pivotal initiative poised to significantly enhance Bahrain’s oil refining capabilities and bolster the national economy. Spearheaded under the patronage of His Majesty King Hamad bin Isa Al Khalifa, the project marks the largest strategic undertaking in Bahrain’s history, coinciding with the National Day celebrations and the 25th Anniversary of His Majesty’s Accession to the Throne.
The inauguration of BMP marks a significant moment in Bahrain’s history, not just for its advancements in the energy sector but also in honouring the royal traditions that connect the past to the future. His Majesty the King Khalifa ceremonially cut the ribbon using a traditional dagger (Khanjar), mirroring the gesture made by his late great grandfather, His Highness Shaikh Hamad bin Isa Al Khalifa, during the official opening of the Bapco Refinery on December 11, 1937. This symbolic act celebrates a royal legacy deeply intertwined with Bahrain’s journey of progress, reflecting a commitment to preserving heritage while embracing innovation.
The BMP is expected to increase Bahrain’s production capacity by 42 per cent reaching 400,000 barrels per day. This expansion is projected to support the national economy by creating jobs, improving the quality of petroleum products, and generating substantial revenues.
Highlighting the project’s significance, Bapco Refining chief executive Dr Abdulrahman Jawahery, emphasised its role in strengthening Bahrain’s economy by focusing on the employment of Bahrainis and improving efficiency in the oil sector.
Dr Jawahery praised the historical cooperation between Bahrain and Saudi Arabia, noting that the partnership with Saudi Aramco is integral to the project’s success. “We currently import 220,000 barrels per day of Saudi crude oil, and with the project’s completion, imported quantities will exceed 320,000 barrels per day. This sustainable cooperation spanning more than 70 years serves as a model for Gulf integration,” he said.
The BMP incorporates state-of-the-art technologies to enhance oil industry performance. Over 500 Bahraini engineers have been employed so far, with plans to achieve a 90pc Bahraini workforce within the next five years. Each job within Bapco is expected to create around ten additional jobs in the private sector, supporting maintenance and services.
Bapco Energies group chief executive Mark Thomas highlighted the project’s alignment with Bahrain’s strategic transformation in the energy sector. Bahrain aims to diversify its energy sources, reducing reliance on domestically produced natural gas for electricity generation by exploring solar, wind, and potential nuclear energy technologies by 2030. This diversification effort is part of Bahrain’s broader strategy to address energy security challenges and tackle inflation, with 85% of the refinery’s production allocated for export.
Mr Thomas also emphasised the importance of collaboration with Saudi Arabia on large-scale solar energy projects and joint ventures for trading refinery products. These initiatives are expected to enhance economic integration and expand Bahrain’s access to global markets.
The project focuses on improving the quality of petroleum products while reducing waste generated during the refining process. Six main products will be produced, including LPG, jet fuel, kerosene, and diesel. The BMP is anticipated to form the backbone of Bahrain’s economy in the coming years, contributing to government efforts to diversify income sources and reduce reliance on oil.
Adding to the significance, Bahrain’s oil and gas sector has been a cornerstone of the economy, contributing 14.5pc to the kingdom’s GDP in the first half of 2024. The sector’s history dates back to 1925, with significant milestones such as the discovery of oil at Jabal Dukhan in 1932 and the construction of the world’s longest submarine oil pipeline in the 1940s. The Bapco refinery has continually expanded since its establishment in 1936. The sector’s evolution includes the formation of Bapco Energies in 2023, highlighting Bahrain’s ongoing commitment to energy transformation and sustainability.
The BMP marks the beginning of a new phase of innovation and sustainability in Bahrain’s energy sector, supporting the kingdom’s economic vision aimed at ensuring a sustainable energy future.
