The memorandum covers a review of how Bahrain can meet its increasing demand for gas, including the possibility of liquefied natural gas and pipeline gas import initiatives.

A joint steering group will be formed, with representatives from both organisations.

“To meet our strategic objectives, we believe that the country will require important energy resources and clean natural gas,” said Abdul-Hussain Ali Mirza, Bahrain’s Oil and Gas Minister, in a joint statement with Shell.

“We hope that together we can develop new activities in the kingdom, help meet growing energy demand and, in turn, support continued economic growth,” said Martin Trachsel, vice president for Shell Gas & Power in the Middle East, in the same statement.

A source at Noga says that the memorandum is part of a larger project to expand Bahrain’s oil and gas infrastructure, which will continue regardless of the current economic downturn.