Shell and BP to supply gas to Kuwait

14 April 2014

Energy majors Shell Group and BP will supply 2.5 million tonnes a year of liquefied gas to Kuwait

UK/Dutch oil firm Shell Group and the UK’s BP have signed two agreements to supply Kuwait with liquefied natural gas (LNG) for the next five to six years.

The companies will deliver approximately 2.5 million tonnes a year (t/y) of LNG to Kuwait, according to Jamal al-Loughani, deputy director of marketing at state-owned Kuwait Petroleum Corporation (KPC), speaking to the local Al-Seyassah newspaper.

A third LNG supply contract is expected to be signed before the end of April.

Kuwait has been importing LNG at a floating storage and regasification unit (FSRU) at the Ahmadi gas port, near the Mina al-Ahmadi refinery, since late 2009.

However, in February, state-refiner, Kuwait National Petroleum Company (KNPC) signed a design contract with US engineering firm Foster Wheeler for a permanent onshore import and regasification terminal at Al-Zour. KNPC hopes to begin operations at the new terminal in 2020.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications