Aramco, BAPCO's New Pipeline to Meet Bahrain Energy Demand

Aramco, BAPCO's New Pipeline to Meet Bahrain Energy Demand
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Aramco, BAPCO's New Pipeline to Meet Bahrain Energy Demand

Aramco, BAPCO's New Pipeline to Meet Bahrain Energy Demand

Saudi Aramco and the Bahrain Petroleum Company (BAPCO) announced on Tuesday the successful operation of the AB-4 pipeline, marking a new phase in the strategic Aramco-Bahrain crude oil pipeline.

The new pipeline aims to meet Bahrain’s growing energy demand, Aramco said in a statement.

It will be capable of transporting up to 350,000 barrels of crude oil per day.

The AB-4 pipeline, which is 30 inches in diameter and 112 kilometers long, begins at Saudi Aramco’s Abqaiq Plants Facility and terminates at the BAPCO Refinery in Bahrain.

It consists of three segments: a 42-km onshore Saudi segment, a 28-km Bahrain onshore segment and a 42-km offshore segment.

“The operation of AB-4 pipeline is another chapter in the special relationship between Saudi Aramco and BAPCO in several aspects, including the energy sector that has flourished for more than 73 years and beyond,” said Acting Executive Head of Pipelines Distribution and Terminals at Saudi Aramco Abdullah Mansour.

The new pipeline has been equipped with the latest technologies to ensure safety, environmental protection and hydrocarbon supply reliability in the coming decades.

The existing 73-year-old pipeline system, which has been supplying BAPCO with crude oil since 1945, will retire safely.

The work on the project will continue over the coming weeks to stabilize the flow of crude oil and activities related to the trial operation of this huge project.

Saudi Aramco and BAPCO will transfer the full supply of crude oil to the new pipeline in the coming months and the new line will replace the old one gradually and according to a specific timetable.



Gold Steady as Market Eyes Middle East Conflict, Fed Decision

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
TT
20

Gold Steady as Market Eyes Middle East Conflict, Fed Decision

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices were steady on Tuesday as investors assessed the conflict between Israel and Iran and looked ahead to this week's US Federal Reserve's policy meeting.

Spot gold was steady at $3,383.01 an ounce, as of 0851 GMT US gold futures fell 0.5% to $3,401.30.

Israel and Iran exchanged attacks for a fifth consecutive day on Tuesday, Reuters reported.

US President Donald Trump urged an evacuation of Iran's capital Tehran and cut short his trip to the G7 summit in Canada. A separate report said he had asked for his administration's National Security Council to be prepared in the situation room.

"Markets are waiting for the latest signals whether hostilities between Israel and Iran would escalate or will remain contained," said Han Tan, chief market analyst at Exinity Group.

"Gold still retains its bias for lurching upwards on signs of a worsening Middle East conflict, given the precious metal's stature as the preferred safe haven of late."

Zero-yield bullion is considered a hedge against geopolitical and economic uncertainty and tends to thrive in a low-interest environment.

The US central bank rate decision and Chair Jerome Powell's remarks are due on Wednesday. Traders are currently pricing in two cuts by the end of the year.

Meanwhile, Citi lowered its short-term and long-term price targets for gold, projecting prices could drop below $3,000 per ounce by late 2025 or early 2026, driven by declining investment demand and an improving global growth outlook, it said in a note on Monday.

Elsewhere, spot silver was up 0.3% at $36.45 per ounce, platinum was unchanged at $1,246.59, while palladium fell 0.4% to $1,025.44.