Nizer al-Adsani, the new chief executive officer of state-owned Kuwait Petroleum Corporation (KPC), has set out the strategy for the future of Kuwait’s hydrocarbons industry, saying gas supply will be the key focus.
Speaking at the MEED Kuwait Energy and Efficiency 2013 conference on 2 June, Al-Adsani stressed the need for Kuwait to advance its operations in gas to free up crude for export.
“Demand in the GCC from power generation and the industrial sector has far outpaced the region’s gas exploration and production,” Al-Adsani said. “In Kuwait, the oil and gas growth strategy is aimed towards bridging the gap.”
Kuwait currently produces 1 billion cubic feet a day (cf/d) of natural gas of which 60 per cent is used in refining and petrochemicals and 40 per cent is used in electricity generation.
Kuwait also has to rely on gas imports during the summer months when power demand peaks. The state has a floating liquefied natural gas (LNG) import terminal that provides 500 million cf/d, but Al-Adsani said that a permanent facility is now being planned that will be able to service the market all year round.
Kuwait currently burns 350,000 barrels a day (b/d) of crude for domestic use with power generation being the main benefactor. By 2030, this could rise to 800,000-900,000 b/d.
KPC now plans to use more gas for power generation and industry, but according to Al-Adsani, Kuwait will need 4 billion cf/d of gas to meet demand by 2030. “Kuwait has been using associated gas, heavy fuel oil and crude oil for power generation,” Al-Adsani said. “This will continue for some time in the future growth.”
KPC also intends to explore new technologies and innovation in enhanced oil recovery of its existing fields in order to use less gas in the oil production process.
Al-Adsani also called for greater co-operation between GCC countries in order to increase gas supplies and even suggested that a GGC-wide gas grid could be a solution.