Aluminium Bahrain enters a transformative phase with a 10-year Natural Gas Supply Agreement inked with Bapco Energies' subsidiary, Bapco Upstream. Alba's Chairman, Mr. Khalid Al Rumaihi, highlights the significance of this deal at the Signing Ceremony on January 23, 2024. The Agreement, effective immediately, streamlines Alba's gas requirements under one contract, featuring a fixed price structure of $4 per million British thermal units for the initial 5 years. Beyond stability, this partnership sets the stage for collaborative and transparent growth in the years to come.
In a pivotal moment for Aluminium Bahrain B.S.C. (Alba), a groundbreaking 10-year Natural Gas Supply Agreement has been solidified with Bapco Upstream, a wholly-owned subsidiary of Bapco Energies. The momentous Signing Ceremony took place on January 23, 2024, at Al Dana Hall, Alba, attended by key dignitaries including Alba's Chairman, Mr. Khalid Al Rumaihi, Bapco Upstream's Chairman, Eng. Faisal Al Mahroos, Alba's CEO, Ali Al Baqali, and Bapco Upstream's CEO, Johann Pleininger, among others.
This strategic Agreement, effective immediately, replaces all preceding agreements and streamlines Alba's natural gas requirements under one comprehensive contract. A noteworthy facet of this deal is the fixed price structure set at $4 per million British thermal units (MMBTU) for the initial 5-year period. Subsequently, the gas price will be subject to determination by the Competent Authority, introducing flexibility in the latter half of the decade.
Mr. Khalid Al Rumaihi, Chairman of the Board at Alba, emphasized the historical significance of this Agreement, stating, "Securing a 10-year Natural Gas Supply Agreement marks a significant chapter for Alba." The stability provided by a fixed price for the first 5 years is seen as a foundational element, setting the stage for future growth and collaboration.
Mr. Al Rumaihi further underscored the strategic importance of the partnership with Bapco Energies. Beyond being a supplier of natural gas, this collaboration is viewed as a groundwork-laying exercise for a future characterized by collaboration and transparency. The vision extends beyond mere transactions to fostering sustainable growth, aligning with Alba's commitment to responsible and forward-looking practices.
As industries navigate a dynamic energy landscape, Alba positions itself with a secure and strategic energy source, laying the groundwork for sustained success in the years to come. The collaboration with Bapco Energies not only addresses immediate needs but also signifies a commitment to adaptability, growth, and responsible resource management.
Alba's 10-year Natural Gas Supply Agreement with Bapco Energies marks a historic milestone, providing stability and strategic alignment for the future. The fixed price structure for the initial 5 years brings assurance to Alba's operations, while the partnership with Bapco Energies sets the tone for collaborative and transparent growth. This Agreement, effective immediately, replaces prior contracts, streamlining Alba's gas requirements. Beyond a transactional relationship, the collaboration signifies a commitment to sustainability and responsible growth, positioning Alba for a decade of strategic and stable energy supply.