StockMarketWire.com - Aluminium Bahrain (Alba) has been informed by the Bahrain Petroleum Company (Bapco) that the National Oil and Gas Authority of Bahrain (NOGA) has issued a directive to increase the price of natural gas it is supplied.
From the beginning of next year it will rise from $1.50 per million British thermal units (MMBTU) to US$2.25 per MMBTU.
A price increase had been expected due to announcements by NOGA last year. If the notified price increase takes effect, Alba expects that it would result in an increase of approximately $85m in Alba's cost of sales for the year 2012 based on its expected production level.
Bapco also indicated that NOGA is initiating a comprehensive study of the long-term natural gas supply and demand in the Kingdom of Bahrain, including the need for imports. Bapco stated that the study will also address the need for establishing a new gas pricing structure in the Kingdom of Bahrain after 2012.
