Subsidy cuts to give fillip to economy

Bahrain will achieve a saving of US$1.7 billion by 2019 through the various subsidy cuts, Minister of Energy Dr. Abdulhussain Mirza revealed.  

Addressing the AmCham business networking event here yesterday, Dr. Mirza said Bapco modernisation programme, aimed at increasing its production capacity and estimated at US$5bn, is expected to be completed by 2021.

Outlining the various investment projects undertaken by the Ministry, he explained: “The A/B Pipeline Project, estimated at US$300 million, aimed at replacing the existing oil pipeline from Saudi Arabia, is expected to be completed by the second quarter, 2018.” 

The Kingdom in recent years has announced many new projects, including a US$658m liquefied natural gas (LNG) receiving terminal, aimed at securing the country’s future energy need.             

“Electric power is mostly used in the Kingdom for air conditioning and more stipulations regarding the same are going to be introduced,” the Minister said.

Dr. Mirza said that the GCC gas grid was considered for streamlining gas consumption in the region, similar to the power grid. “Also, the GCC region is steadily progressing for making power trading a reality, which will allow the member countries to sell the surplus production.”

To a query on OPEC oil policy, the Minister replied: “If the GCC countries cut its oil production, that market share will be captured by other countries.” 

He added that local gasoline price in the Kingdom is still among the cheapest in the region, even after a steep hike recently.

“Technical evaluation studies of NOGA’s deep gas exploration project will be completed by March and the award of the contract can be expected soon after that,” he informed.

Dr. Mirza also suggested the introduction of schemes that will help the growth of solar and wind energy use. He remarked that schemes that will benefit people, who take initiative in generating or employing solar energy, were being considered by the Ministry. 

“The cost of solar-based energy generation has come down significantly in recent years and the GCC should utilise the new development,” he added.