A new LNG import project planned for Bahrain has encountered fresh setbacks, posing questions over the future of an LNG carrier serving as a floating storage unit.

Sources working closely with Bahrain LNG said the emirate’s authorities are rethinking the start-up date for the new plant as talks rumble on with end buyers on the gas imported.

They said the project has shed several key personnel and referenced what one described as “multiple technical problems” with the sea island built to house the reliquefaction equipment.

Numerous delays

The new import terminal has suffered numerous delays but was thought to be nearing start-up since its dedicated FSU — the Teekay LNG Partners 173,400-cbm Bahrain Spirit (built 2018) — arrived in July.

In November, project partner Teekay LNG said the import terminal in the Hidd Industrial Area would begin operations before the end of 2019.

The company did not respond to a request for an update.

The Bahrain Spirit arrived with a full cargo, after idling off Fujairah and Dubai, and was expected to use the gas for commissioning the new plant.

The vessel is equipped with a partial reliquefaction system to help manage cargo boil-off, but ship-tracking analysts said that idling for so long will likely have affected the volume and condition of the cargo.

The Bahrain Spirit, which was converted into an FSU for the project before its delivery as a newbuilding, has been on hire to Bahrain LNG since the beginning of 2019.

The new import terminal, which was originally scheduled for start-up in 2018, is located to the north-east of Khalifa Bin Salman Port.

LNG would be supplied from the FSU to an onshore plant offering 800m standard cubic feet per day of regasification capacity.

Teekay LNGcontrols a 30% stake in Bahrain LNG with local developer Noga Holding owning 30%, Gulf Investment 24% and Samsung C&T 16%.