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|16 January, 2019

Kuwait's KNPC requests extension of contract with Golar LNG

Second extension came after delay in contract launch

Image for illustrative purposes. Employess of Kuwait National Petroleum Co stand in front of Shuaiba Oil Refinery in Shuaiba November 4, 2006.

Image for illustrative purposes. Employess of Kuwait National Petroleum Co stand in front of Shuaiba Oil Refinery in Shuaiba November 4, 2006.

REUTERS/Stephanie McGehee

KUWAIT CITY - Kuwait National Petroleum Corporation (KNPC) has requested for extension of the lease contract for the floating plant to evaporate liquefied gas and pump it to the Mina Al-Ahmadi Refinery and other power plants network as per the new one year contract signed with Golar LNG starting from March 2, 2019 until March 1,2020, reports Al-Anba daily quoting oil sources.

The value of the contract is KD 14.2 million, equivalent to $46.9 million, sources said, noting the second extension of the contract came after the delay in the launch of the new contract.

The extension of the contract coincides with Kuwait’s implementation of the permanent facilities for the import of liquefied natural gas in southern Zour region, which is expected to be completed by 2020/2021.

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In August 2013, KPC had signed a $212 million contract with Golar to provide a floating plant to evaporate the liquid gas imported through the vessels to be pumped through the Mina Al-Ahmadi Refinery to power plants.

Sources said the floating gas plant arrives in Kuwait in April each year and continues to work in September or October, indicating the capacity of this plant is 170,000 cubic meters, and at the peak time, the plant can pump about 700 million cubic feet of gas per day.

The average import rate for liquefied natural gas (LNG) shipments starts at 5 shipments in March, rising to 6 in April, to 7 shipments per month in May, with an average of 10 shipments per month during the rest of the month; June, July, August, September and October, it said.

Sources pointed out that KNPC through these contracts is implementing its strategy in the transition to the provision of petroleum products compatible with environmental requirements, believing in the need to actively contribute to the preservation of the local environment, while providing the domestic needs of petroleum products to Kuwait and some other markets

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