Derasat study hails Bapco Project as key industrial milestone

Derasat Bapco Modernization Project-GCC Business News
Rep. Image credits: BMP | Cropped by GBN
By Desk Reporter, GCC Business News

A scientific study conducted by the Bahrain Centre for Strategic, International and Energy Studies (Derasat) has confirmed that the Bapco Modernization Project represents a milestone in the Kingdom’s industrial transformation journey.

The Derasat report embodies leadership’s vision of building a modern national economy based on efficiency, innovation, and sustainability. It concludes that the Bapco Modernization Project (BMP) represents an integrated model of sustainable development.

The study was prepared by a Derasat research team led by Dr. Abdulla Isa Al Abbasi, Director of the Energy and Environment Studies Program, and Sabeka Khalid Ismaeel, Assistant Analyst, with the participation of Associate Professor Dr. Mohammed Ali bin Shams, Head of the Chemical Engineering Department at the University of Bahrain.

Valued at $7.3 billion, the Bapco Modernization Project is the largest industrial investment in the Kingdom’s history and achieves this through enhancing production efficiency, increasing value-added output, and reducing environmental impact, in alignment with the Bahrain Vision 2030 goals of economic diversification and reliance on knowledge and modern technologies.

The study notes that the Bapco Modernization Project delivered a comprehensive strategic transformation, increasing refining capacity from 267,000 to around 380,000 barrels per day, and further to 405,000 barrels per day within a year of its inauguration. It introduced advanced refining and processing systems that support the production of high-specification clean fuels, reduce emissions, improve resource efficiency, and enhance operational flexibility by enabling the processing of multiple crude types in line with global market demands.

Derasat Bapco Modernization Project study -GCC Business News
Rep. Image credits: BMP | Cropped by GBN

The study also highlights digital transformation and artificial intelligence as core pillars of refinery operations, with sensors and predictive analytics enabling early fault detection, reducing losses, improving energy efficiency, and strengthening long-term operational sustainability and competitiveness.

Economic benefits of Bapco Modernization Project

In addition, the research identifies significant indirect economic benefits, including growth across the transport, energy, and support services sectors, while contributing to Bahrain’s 2060 carbon neutrality goals. It forecasts stronger future returns through deeper integration between refining and petrochemical industries, supported by a more than 110 percent increase in naphtha production that opens the door to high-value chemical and aromatic industries.

The study concludes that the Bapco Modernization Project marks a new starting point for Bahrain’s energy policy development, underscoring the need to advance industrial integration, expand the use of artificial intelligence and predictive analytics, and continue investing in human capital through specialized training and research partnerships.

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