Japan’s JGC has won a $98.7m contract to build a gas pipeline system and storage facilities in Bahrain, having signed the deal at a ceremony in Manama on 4 October.

MEED reported in May that JGC was the only contractor submitting an engineering, procurement and construction (EPC) bid for the tender.

The contract was awarded by Bahrain National Gas Expansion Company (BNGEC), a subsidiary of state-owned Nogaholding, and forms the second part of the Bahrain Gas Plant (BGP) project.

JGC was awarded the first package of the project in November 2015 with an EPC contract worth $355m.

Once the project is completed the combined gas processing capacity of BNGEC and Bahrain National Gas Company (Banagas) will increase to 653 million cubic feet a day (cf/d).

The new contract involves the installation of a new pipeline system to transport gas from the compressor stations to the new gas processing train, a pipeline system to return residue gas for reinjection and a 21km additional butane pipeline to Sitra.

The scope of this contract also includes modifications of the storage facilities in Sitra in order to accommodate additional production from the new gas processing train.

This project will include a land reclamation phase and the installation of two additional storage tanks with 200,000 barrels of capacity for propane and 100,000 barrels for butane, together with ancillary equipment.

Construction work for the second EPC package is expected to be completed in two years, with the commissioning of the overall BGP project expected by the fourth quarter of 2018.

The first package of BGP is to construct a gas processing train for recovering high-value-added products contained in the associated gas such as propane, butane and naphtha with a capacity of 350 million cf/d.