Gas Logistics Project Scrapped by Bahri due to Feasibility Concerns
In a recent development, Saudi Arabian state shipowner Bahri has decided to halt discussions with National Gas & Industrialization (Gasco) regarding a new gas project. The decision to cancel talks on land transport and broader logistics was made mutually due to concerns over the feasibility of the project. This comes after the two companies had been exploring a potential cooperation deal since October 2022.
Bahri and Gasco Cancel Cooperation Deal Over Gas Project
Bahri, a prominent VLCC power in Saudi Arabia, has officially called off negotiations with Gasco, bringing an end to the discussions surrounding the establishment of a new company. The focus of the talks was on the logistics and transportation aspects of the gas project, which have now been scrapped due to lack of feasibility. The decision was reached by both parties after careful consideration of the challenges involved.
Implications of Bahri’s Decision to Scrap Gas Project Talks
The cancellation of talks between Bahri and Gasco regarding the gas project has significant implications for the future of the industry in Saudi Arabia. The decision to halt discussions over land transport and wider logistics raises questions about the feasibility and viability of such projects in the current market conditions. This development underscores the challenges faced by companies in the energy sector and the importance of thorough feasibility studies before embarking on new ventures.
In conclusion, Bahri’s decision to cancel talks with Gasco over the gas project highlights the complexities and uncertainties in the logistics and transportation sector. It serves as a reminder of the importance of careful planning and assessment of feasibility before committing to large-scale projects in the energy industry.
