Propane Energy In Bahrain: Exploring The Kingdom's Fuel Sources

is there propane in bahrain

Propane is a by-product of natural gas processing and oil refining. In Bahrain, propane is produced by the Bahrain National Gas Company (BANAGAS) and Bahrain Petroleum Company (BAPCO). BANAGAS is jointly owned by the Oil and Gas Holding Company (nogaholding), Boubyan Petrochemical Company, and Chevron Bahrain. BAPCO, on the other hand, is wholly owned by nogaholding. In December 2020, Bahrain's propane production was reported at 142,000 barrels, with an all-time high of 181,000 barrels in April 2019.

Characteristics Values
Propane Production in 2020 142.000 Barrel th
Propane Production in 2019 181.000 Barrel th
Propane Production in 2013 53.000 Barrel th
Propane Production Average from 1995 to 2020 88.000 Barrel th
Propane Production Company Bahrain National Gas Company
Propane Production by BAPCO 267,000 barrels per day
Propane Production by Banagas 3300 bpd

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Bahrain's propane production

The Bahrain National Gas Company, also known as Banagas, is a key player in Bahrain's propane production. Founded in 1979, Banagas operates LPG plant facilities that recover propane, butane, and naphtha from the Bahrain Oil Field's associated gas and refinery off-gas. The company has a substantial propane production capacity, currently able to produce 3000 bbls of propane per day.

In addition to Banagas, other companies contribute to Bahrain's propane production. BAPCO, the Bahrain Petroleum Company, refines crude oil and produces a range of petroleum products, including liquefied petroleum gas and propane. The company has a significant refining capacity, processing 267,000 barrels of crude oil per day.

The Gulf Petrochemical Company (GPIC) is another important player in Bahrain's propane production landscape. While its primary focus is on producing ammonia chemical fertilizers and methanol, GPIC's operations are closely linked to the country's natural gas resources, which are a feedstock for propane production.

The development of Bahrain's petrochemical industry, including propane production, has been a priority for the Bahraini government. They have established companies like GPIC and implemented reforms to restructure the oil and gas sector, aiming to diversify the economy and promote growth in sectors like petrochemicals and manufacturing.

With ongoing investments and reforms in the energy sector, Bahrain is working to optimize its propane production and explore new opportunities, such as Carbon Capture and Storage (CCS) technology, to enhance its energy infrastructure and capabilities.

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Propane extraction methods

Propane is a colourless, odourless, non-polar, and non-toxic solvent. It is used in the fragrance and flavouring industries, as well as for cannabis extraction.

Solventless Extraction

This method uses nothing but water, heat, or pressure to separate the desired plant compounds. It is a less popular method than solvent extraction because it cannot be done on a large scale.

Solvent Extraction

This is a more popular method as it can be done on a larger scale. It involves using a solvent to dissolve the plant's oils into a homogeneous mixture.

Butane Extraction

Butane extraction occurs in a closed-loop extraction system. The pressurized solvent is pushed and pulled through a butane extraction tube to recover the gas to its original vessel. Butane has a boiling point of 30.2°F, so it easily re-condenses without extreme temperatures, making it the solvent of choice for passive recovery. Butane yields a more stable extract as the polar terpenes are left behind.

Propane Extraction

Propane extraction is similar to butane extraction but with a higher-pressure load. Propane has a boiling point of -43.6°F, so the sub-zero temperature helps prevent the extraction of lipids and waxes, resulting in a purer extract. These pressures make passive recovery almost impossible without dry ice or liquefied gases, and a recovery pump is needed to assist the propane in recovery.

Blended Gas

Many operators use a blend of butane and propane, as this yields a greater number of extracted compounds than the individual solvents. A common mixture is 70% butane and 30% propane, or a 50-50 blend.

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Propane and the economy

Propane plays a significant role in Bahrain's economy, with the country having a well-developed gas extraction and processing industry. The Bahrain National Gas Company (BANAGAS) was established with the primary objective of processing associated gas into marketable products like propane, butane, and naphtha. This initiative aimed to maximise benefits to the national economy, generating income and employment opportunities for locals.

BANAGAS, owned by the Oil and Gas Holding Company (nogaholding), Boubyan Petrochemical Company, and Chevron Bahrain, has been a major contributor to Bahrain's economy. In 2016, BANAGAS awarded a $360 million contract to build a third gas plant to meet the growing demand for gas in the country. This expansion ensures BANAGAS's continued role in the economy by increasing its capacity to process associated gas into propane and other products.

The Gulf Petrochemical Company (GPIC) is another key player in Bahrain's propane industry. GPIC converts natural gas into ammonia, chemical fertilisers, and methanol, with a substantial production capacity. The company's operations have led to the development of new downstream industries in Bahrain, further enhancing the country's economy.

Bahrain's propane industry is also supported by its oil and gas reserves. In 2018, the Bahraini government announced a significant oil and gas discovery, adding to its existing proven reserves. This discovery is expected to boost production and potentially shift the country's energy policy. The government is actively exploring Carbon Capture and Storage (CCS) technology to optimise its spent oil and gas reservoirs, demonstrating a commitment to sustainable practices.

The country's propane sector is further strengthened by its infrastructure upgrades, such as the expansion of the BAPCO refinery and the construction of an LNG import terminal. These developments aim to increase processing capacity, improve energy efficiency, and ensure a reliable supply of propane and other gases to meet industrial demands.

In summary, propane is integral to Bahrain's economy, with BANAGAS and GPIC playing pivotal roles in extraction, processing, and downstream industries. The country's propane sector benefits from its reserves, infrastructure upgrades, and exploration of sustainable technologies, positioning Bahrain for continued economic growth and diversification.

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Propane and energy policy

Propane is a crucial component of Bahrain's energy policy and plays a significant role in the country's economy. In December 2020, Bahrain's propane production was reported at 142,000 barrels, with monthly data showing an average of 88,000 barrels from January 1995 to December 2020. The country has actively pursued propane production, with a government-initiated project in 1977 to establish a gas processing plant to convert associated gas into propane, butane, and naphtha. This project, known as the Bahrain National Gas Company (BANAGAS), aimed to maximise the benefits to the national economy and provide local employment opportunities.

The Gulf Petrochemical Company (GPIC), established in 1980, also contributes to propane production in Bahrain. While its primary focus is on ammonia and methanol production, GPIC's operations create by-products such as propane and butane. Additionally, Bahrain Petroleum Company (BAPCO) refines crude oil and produces liquefied petroleum gas, including propane.

Bahrain's energy sector is undergoing a transition, with efforts to increase oil and gas production while also exploring renewable energy sources. The recent discovery of a large-scale, unconventional oil and gas reserve is expected to boost output over the coming decade. At the same time, the government is working towards rationalising domestic energy consumption and promoting energy efficiency.

The National Oil and Gas Authority (NOGA), established in 2005, regulates the hydrocarbons sector and plays a crucial role in the country's energy strategy. NOGA operates an investment and development arm, nogaholding, which owns Tatweer Petroleum and BAPCO. Tatweer is responsible for all oil and gas exploration and production activities in the kingdom.

In terms of infrastructure, Bahrain is expanding and upgrading its oil and gas facilities. A new gas plant, with a capacity of 350 million standard cubic feet per day, is being constructed to process associated gas from the Bahrain Field. Additionally, a new floating liquefied natural gas (LNG) terminal is being developed to secure energy supplies and meet seasonal gas demand.

The government's National Energy Strategy, expected to be released by the end of 2023, will outline further changes to state-owned enterprises in the oil and gas sector and highlight strategic priorities. With a focus on economic diversification, Bahrain aims to develop the petrochemical industry and target manufacturing in sectors such as plastics, chemicals, and petrochemicals.

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Propane and the petrochemicals industry

Propane is a crucial component of Bahrain's petrochemicals industry, which is a top priority for the country's industrial development. The Gulf Petrochemical Company (GPIC) converts natural gas into ammonia chemical fertilisers and methanol, with a production capacity of about 1.5 million tons per year.

The Bahrain National Gas Company (BANAGAS), established in 1979, is a leader in the industry and a major contributor to the country's economy. The company's primary objective is to process associated gas, a byproduct of oil extraction, into propane, butane, and naphtha. In 2020, BANAGAS reported a monthly average propane production of 88,000 barrels, with a record high of 181,000 barrels in April 2019.

The petrochemicals industry in Bahrain has experienced rapid growth in five sub-sectors: construction chemicals, water treatment chemicals, polymer and plastic additives, paints and coating additives, and oil field chemicals. The government has also established the Gulf Petrochemical Industries Company (GPIC) in 1980 to produce ammonia and methanol. By 1988, GPIC's daily production of 1,700 tons of petrochemicals led to the emergence of new downstream industries in Bahrain.

BAPCO, the Bahrain Petroleum Company, refines 267,000 barrels of crude oil per day and produces various petroleum products, including liquefied petroleum gas, propane, and butane.

Bahrain's petrochemicals industry is not only significant for the country's economy but also presents opportunities for international companies, particularly from the US, to invest in manufacturing basic chemicals, fertilisers, plastics, and synthetic rubber, as well as pesticides, cosmetics, and synthetic fibres.

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Frequently asked questions

Yes, propane is available in Bahrain.

In December 2020, Bahrain's propane production was 142,000 barrels per month.

Propane is used for various purposes in Bahrain, including cooking, heating, and powering vehicles.

Bahrain's propane is produced from the country's oil and gas fields, with the Bahrain National Gas Company (BANAGAS) being the primary processor.

Yes, tourists can use propane in Bahrain for camping, cooking, and other outdoor activities. However, it is essential to follow local regulations and purchase propane from authorized distributors.

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