Bahrain plans to start the developing its tight gas resources this year and is already in talks with oilfield services companies.

Bahrain has “large” tight gas deposits within the onshore Khuff reservoirs and feasibility studies are ongoing, Sheikh Mohammed bin Khalifa al-Khalifa told the Abu Dhabi's English language daily The National.

Al-Khalifa also said that Bahrain is in talks with oilfield services companies such as Schlumberger and Halliburton for developing the gas reserves, and will also consider partnering with international oil companies for the project in future.

The minister’s statement comes at a time when Bahrain is progressing with the construction of the Gulf state’s first liquefied natural gas (LNG) import terminal, due to be operational next year, to meet growing demand for gas.

The Bahrain LNG terminal would have a capacity of 800 million cubic feet of gas a day, and could also extend supply to neighbouring Saudi Arabia if the country connects to a developing regional gas connection grid, according to the oil minister.

Bahrain’s linkages with a regional gas network would be more for “security of supply” rather than cost-competitiveness with other LNG supply, Al-Khalifa said.