LONDON: Russia is in advanced talks with Bahrain over a three-year liquefied natural gas (LNG) agreement under which Moscow would supply the Gulf kingdom with 1.5 million metric tons of the fuel, according to three sources close to the matter.
The prospective deal would be the first of its kind between the countries and continues the expansion of Russia’s reach in global energy markets and LNG competition with the United States.
Russia, the world’s fourth-largest LNG producer behind the United States, Qatar and Australia, is striving to enter the top three global LNG exporters and plans to produce 100 million tons per annum (mtpa) of the super-chilled gas in the medium term.
Home to the U.S. Navy’s Fifth Fleet, Bahrain is seeking to increase LNG imports to meet a gas shortage amid peak summer energy demand for air-conditioning. Last month the kingdom received its first LNG cargo in six years.
Russian Deputy Prime Minister Alexander Novak met Bahrain’s Minister of Oil and Environment, Mohamed bin Mubarak bin Daina, this week to discuss the purchase of 1.5 million tons, or 20 LNG cargoes, per year for three years, the sources said.
Russia’s LNG exports down 4.6% y/y in January-April, data shows
“Talks are at an advanced stage and the deal is expected to be concluded soon,” one of the sources said.
Volumes are expected to come from Russia’s Yamal LNG plant, in which Russia’s largest LNG producer, Novatek, holds a majority stake.
Novatek and Bahrain’s government communications office did not respond immediately to requests for comment.
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