September 15, 2007

Al Ezzel Power Plant, Isle of Muharraq, Bahrain

Dr. Robert Peltier, PE

The island Kingdom of Bahrain is unique in the Middle East. Its oil production is minimal, compared with that of its neighbors, even though Bahrain was the first Gulf state to discover oil beneath its sands.

 

Revenues from oil and gas sales account for about 13% of Bahrain's income. Even without a large flow of petrodollars, the kingdom has managed to develop perhaps the most diversified economy in the region. It has large shipbuilding and aluminum production plants, one of the region's busiest airports, and a thriving tourist industry. Many consider the kingdom the international financial services capital of the Middle East. Less surprisingly, Bahrain also refines lots of Saudi Arabian oil and is home to a number of other downstream oil and gas businesses. Two big reasons for Bahrain's success: It allows 100% foreign ownership of onshore businesses and does not tax corporate or personal income.

Like any expanding economy, Bahrain's requires increasing amounts of reliable and affordable power. To get it, the kingdom decided three years ago to open up its electricity sector to outside investors. The $500 million, 950-MW Al Ezzel Power Plant (Figure 1) was developed by the Ministry of Finance and National Economy as Bahrain's first independent generating station. Located in the Hidd industrial area of Muharraq Island, just south of Bahrain International Airport, the plant burns natural gas supplied by Bahrain Petroleum Co. under a long-term contract.

 

 

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