Bahrain intends to push ahead with plans to buy gas from Iran, despite the concerns of the U.S., an important ally for the small Gulf kingdom, the Financial Times reports Thursday on its Web site, citing senior officials.
Sheikh Khalid bin Ahmed bin Mohammed al-Khalifa, Bahrain's Foreign Minister, told the FT that negotiations with Tehran to import 1 billion cubic feet of gas a day were "very important" and "real."
Oil ministers from the two sides met in Bahrain's capital last week and agreed to a framework agreement on the deal. But observers question whether the project will go ahead, given regional politics and the kingdom's reliance on the U.S. and Saudi Arabia, which has poor relations with Tehran.
Bahrain faces potential gas shortages in the future. Although the Gulf region is rich in hydrocarbons, little attention has been paid to developing gas, and only Iran and Qatar can claim to have ample supplies of the resource as economies rapidly expand.