Kuwait Buys Three Spot LNG Cargoes for April

Source: Reuters 2/14/2012, Location: Middle East

Kuwait Petroleum Corporation has bought three spot cargoes of liquefied natural gas (LNG) for delivery in April to help meet rising demand for electricity and use in its largest refinery, a statement on KPC's website said.

Kuwait began importing super-cooled gas in 2009 to help meet demand for electricity in one of the world's highest per capita power consumers and has long-term deals to buy gas from Royal Dutch Shell and Vitol from 2010-2013. But surging air conditioning demand in the hot Middle Eastern summer and a lack of domestic supply means Kuwait needs to import more gas each year to feed its power plants.

"In preparation for the next summer season... (KPC) concluded a contract for these consignment in the spot market, in addition to the consignments that have previously been agreed to between the KPC with Shell and Vitol in long-term contracts," Jamal Al-Loughani, deputy marketing director at KPC, said.

Loughani did not identify the sellers but said two of the cargoes were bought from a "major gas trading company" with the other sourced from a major LNG exporter. Kuwait is close to the world's largest LNG exporter Qatar but the Gulf neighbours have not agreed any long term supply deals yet.

KPC said the spot cargoes - which range from 2.8 trillion to 3.5 trillion British thermal units (2.77-3.47 billion cubic feet of gas) - were bought for among the lowest prices currently possible on the international market. The first cargo, expected at the start of April, will be used by KPC's 466,000 barrel a day (bpd) Mina Al-Ahmadi refinery.

State-run KPC's LNG imports have risen sharply from 11 in 2009 to 33 in 2010 because the Gulf Arab oil exporter does not have enough natural gas to meet power demand in summer and supply seawater desalination plants. Kuwait hopes to nearly quadruple its gas output to 4 billion cubic feet per day (bcfd) by 2030, to help feed an expected doubling in electricity demand.

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Related Articles: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 

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