Kuwait Purchases 3 Spot LNG Cargoes

Kuwait has purchased three consignments of liquefied natural gas, Mr. Jamal Al-Loughani, Deputy Managing Director of Marketing Operations, International Marketing Sector, Kuwait Petroleum Corporation said.

He said that one consignment will be delivered early next April and the second consignment during the first half of the month and the third consignment in the second half of the same month, explaining that the load of each consignment is ranging between 2.8 and 3.5 trillion BTUs.

Al-Loughani said that the 3 consignments will be used for the Ministry of Electricity and Water’s consumption of liquefied natural gas (LNG) during the month of April, noting that the first consignment to be received by Kuwait at the beginning of April will be used for the preparation of reception and re-evaporation facilities in Mina Al-Ahmadi refinery.

“In preparation for the next summer season, and the import of natural gas (LNG) to meet the requirements of the Ministry of Electricity and Water for the season 2012, the Kuwait Petroleum Corporation represented in the International Marketing Sector, 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,” Al-Loughani explained.

As for the companies with whom the Kuwait Petroleum Corporation entered into a contract for the 3 consignments, Al-Loughani said two consignments were purchased from a major gas trading company and one consignment from a global trading company specialized in the export of LNG, indicating that the International Marketing Sector received the lowest world prices currently prevailing for the purchase of these consignments.

As for the possibility of the Kuwait’s need to import additional consignments for the current year, Al-Loughani said that the International Marketing Sector follows up and reviews the domestic production of gas, and compares it to the domestic consumption, in order to identify the Kuwait’s needs to import other consignments in the light of market developments and the available alternatives of energy.

“The International Marketing Sector has the flexibility in the contracts signed, allowing the Kuwait Petroleum Corporation to purchase additional quantities of gas in addition to the KPC’s ability to purchase from the spot market,” Al-Loughani explained.

Al-Loughani said that the increase in the Kuwait’s production of crude oil led to higher production of associated natural gas during the past year, making the International Marketing Sector not to import additional consignments, in addition to the early onset of winter season, where temperatures began to drop starting from the last October.

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LNG World News Staff, February 14, 2012; Image: KPC