Bahrain’s Energy Minister, Abdul-Hussain bin Ali Mirza, announced that Saudi Arabia and Bahrain have signed contracts worth around $300m for a new 350,000 b/d oil pipeline between the two countries, reported Reuters.

Mirza explained that the old pipeline was likely to be removed from service in the second half of 2018.

The new pipeline’s capacity could be increased to 400,000 b/d, he added.

The agreements were signed with Saudi Arabia’s Al Robaya Holding Company and the National Petroleum Construction Company of the United Arab Emirates.

According to Mideast Times the pipeline is scheduled to be completed between 2017 and 2018, with six months worth of trail runs following completion.

The pipe will carry Arabian Light crude from Aramco’s Abqaiq plant in Saudi Arabia to Bahrain, partly over ground and partly under the sea.