Interview: Somaya Al Radhi
To what extent is Bahrain a destination for oil, gas and renewable energy investment?
SOMAYA AL RADHI: Bahrain has been a destination for international oil and gas investment since the discovery of oil in the 1930s. Today, the kingdom continues to attract regional and global investment, encompassing financing, exploration and production activities. International partnerships have enabled Bahrain to leverage advanced technologies and expertise.
The country is actively developing renewables to diversify its energy landscape. Collaboration with neighbouring countries to unify the GCC power grid offers significant potential to accelerate the shift towards renewable energy. Bahrain has also enhanced its oil and gas sector competitiveness by focusing on natural gas extraction and production, and adopting advanced technologies to improve efficiency and reduce costs by utilising international consultancy expertise. There are emerging opportunities in Bahrain for oil companies to appraise and produce unconventional resources.
Numerous opportunities exist for Bahrain to further improve its competitiveness in the space. Investing in infrastructure development, such as pipelines and storage facilities, is crucial for enabling the transport and storage of oil and gas, and for generating and distributing renewable energy. Implementing supportive policies, including tax incentives, regulatory frameworks and excess power buy-back options, can attract investors. Encouraging individual investment in renewable energy infrastructure – like solar panels – through affordable alternatives, and promoting continuous education and training of a skilled workforce is also essential to ensure future development in the sector.
How is Bahrain handling environmental and sustainability concerns in its energy production and use?
AL RADHI: The kingdom is addressing these issues through the National Energy Strategy, which was launched in November 2023. The strategy aligns with the UN Sustainable Development Goals and aims for net-zero emissions by 2060, with a 30% reduction in CO₂ emissions by 2035. The December 2023 publication of the national action plan, Blueprint Bahrain, focuses on a low-carbon economy, climate change adaptation and green economy opportunities. Bahrain has launched a $750m climate technology fund and the Safa carbon offsetting platform to support these initiatives.
Bahrain is adopting practices to mitigate the environmental impact of oil and gas extraction and production by emphasising digital solutions for efficiency. The kingdom aims to generate 280 MW from renewables by 2025 and 710 MW by 2035 by developing solar and wind energy infrastructure and waste-to-energy technologies. There is also growing support for electric vehicles with the installation of charging points and stations.
Global hydrocarbons demand remains high, indicating the continued need for fossil fuels. However, Bahrain recognises the importance of diversifying energy sources and is transitioning to cleaner ones, while reducing emissions from conventional methods through technological innovation. Natural gas will serve as a transitional energy source, and investment in carbon capture, utilisation and storage (CCUS) will help repurpose emissions and enhance oil recovery. Despite these changes, hydrocarbons will remain essential for industries that are harder to electrify, such as aviation, cosmetics, petrochemicals and plastics production.
What impact can investment in carbon capture technologies and methane emissions reduction strategies have on economic diversification?
AL RADHI: Investment in these techniques can influence diversification and local industry development by promoting sustainable energy systems. Technology-focused approaches for methane reduction and CCUS provide ways to monetise emissions, while gas-to-value consulting services aid companies in converting otherwise flared or vented gas into marketable products.
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