The construction of an new oil pipeline connecting Saudi Arabia and Bahrain will be completed in 2018, the Bahraini Oil Minister, Sheikh Mohammed bin Khalifa El Khalifa, told Reuters.
The pipeline will have the capacity to carry 350,000 barrels per day (b/d) and will facilitate the expansion of the BAPCO oil refinery, Reuters reports. Bahrain is currently negotiating a contract for the expansion of its oil refinery, the minister said.
The lowest bidder for the project, Reuters reports, is a consortium of TechnipFMC, Samsung Engineering, and Tecnicas Reunidas.
The expansion project is expected to cost $5 billion and expand the capacity of the refinery to 360,000 b/d, up from its current capacity of 267,000 b/d, Zawya reports.
The two countries signed the pipeline $300 million agreement in 2015, Reuters reported at the time. The pipeline is meant to replace an older pipeline with a capacity of 230,000 b/d.