Kuwait Petroleum seeks LNG cargo for new import terminal – sources

Kuwait Petroleum Corp (KPC) is seeking a commissioning cargo of liquefied natural gas (LNG) for the country’s first permanent import terminal, trade sources said.

It is seeking the cargo on a delivered ex-ship (DES) basis for delivery into Kuwait’s Al Zour complex over July 5 to 6 through a tender that closes on June 14, two of the sources said.

The terminal, named Kuwait LNG import terminal (LNGI) Al-Zour, was developed by state-owned Kuwait Integrated Petroleum Industries Company (KIPIC), owned by KPC and is located at the Al Zour complex, which also has a refinery and a petrochemical facility.

The construction of the terminal was expected to be completed in the first quarter of this year, but was delayed due to the coronavirus pandemic.

The 22 million tonnes per annum (mtpa) terminal — the largest import terminal in the Middle East — has eight storage tanks with a capacity of about 225,000 cubic metres and a regasification facility with a capacity of three billion cubic meters of gas per day.

Kuwait has been boosting its reliance on imported gas to meet power demand, especially in summer when consumption by air conditioning systems rises sharply, but it is also focusing on ramping up gas production as part of its 2040 growth strategy.

The terminal was established to meet Kuwait’s growing needs for cleaner fuel to generate electricity as well as the needs of natural gas consumers such as oil refineries and petrochemical industries, according to KIPIC’s website.

KIPIC could not immediately be reached for comment outside of business hours in Kuwait.

“Kuwait’s gas demand is just going to grow as the electricity demand is big and as it slowly moves away from diesel,” a source familiar with the country’s demand said, adding that soaring temperatures in the country at the moment were also boosting demand.
Source: Reuters (Reporting by Jessica Jaganathan; Editing by Edmund Blair and Kim Coghill)

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