Russia is currently in advanced discussions with Bahrain regarding a three-year liquefied natural gas (LNG) agreement. Under this proposed deal, Moscow would supply the Gulf kingdom with 1.5 million metric tons of LNG. This information comes from three sources familiar with the ongoing negotiations.

If finalized, this agreement would mark the first LNG deal between Russia and Bahrain, further extending Russia’s influence in global energy markets and enhancing its competition with the United States in the LNG sector. Russia is the world’s fourth-largest LNG producer, trailing only behind the United States, Qatar, and Australia, and aims to secure a position among the top three global LNG exporters. The country plans to ramp up its production to 100 million tons per annum (mtpa) of LNG in the medium term.

Bahrain, which hosts the U.S. Navy’s Fifth Fleet, is looking to boost its LNG imports to address a gas shortage amid high summer energy demands, particularly for air-conditioning. Last month, the kingdom received its first LNG cargo in six years, highlighting the urgency of these negotiations.

Recently, Russian Deputy Prime Minister Alexander Novak met with Bahrain’s Minister of Oil and Environment, Mohamed bin Mubarak bin Daina, to discuss the potential purchase of 1.5 million tons, equivalent to 20 LNG cargoes annually for three years. One source indicated that “talks are at an advanced stage and the deal is expected to be concluded soon.”

The LNG volumes are anticipated to be sourced from Russia’s Yamal LNG plant, where Novatek, Russia’s largest LNG producer, holds a majority stake. Requests for comments from Novatek and Bahrain’s government communications office went unanswered.