Kuwait Supports Aqaba LNG Terminal Development Plans

Kuwait Supports Aqaba LNG Terminal Development Plans

On Sunday in the city of Amman, and in the presence of the Ambassador of Kuwait to the Hashemite Kingdom of Jordan, Dr. Hamad AI-Duaij, two projects agreements were signed for the financing of the New LNG Port in Aqaba and the Wind Farm Generation Project in Maan District, within the framework of the Framework Agreement signed on 18/09/ 2012 between the Government of the Hashemite Kingdom of Jordan and the Kuwait Fund for Arab Economic Development, the amount of which is U.S. $ 1.25 billion regarding the utilization of the grant allocated by the Government of the State of Kuwait and entrusted to the Fund for its administration in the Framework of the GCC Development Program to finance development projects in Jordan.

The said two Agreements were signed by Dr. Ibrahim Saif, Minister of Planning and International Cooperation and Minister of Tourism and Antiquitie in the Hashemite Kingdom of Jordan on behalf of the Government of the Kingdom of Jordan, whereas Mr. Abdulwahab Ahmed AI-Bader, Director-General of Kuwait Fund for Arab Economic Development signed the Agreements on behalf of the Fund.

New LNG Port in Aqaba:

The Project aims to support the National economy of the Hashemite Kingdom of Jordan and its strategic goals in alleviating the current energy crisis, through the import of liquefied natural gas as a supplementary source to satisfy the current and future demand on natural gas, and guarantee a continuous flow of gas in the event of interruption of other sources, with competitive prices to assist in reducing the cost of electricity production. The project also aims to develop the logistics capabilities of the Aqaba Economic Zone.

The Project consists of the construction and equipping of a new liquefied natural gas port in Aqaba with an operational throughput of 490 million cubic foot per day and a maximum throughput of 790 MMcfd. The Project includes the marine infrastructure for berthing and mooring the floating storage and Regasification unit (FSRU), and the LNG carriers, and a loading platform with the related equipment for handling and controlling the gas flow and the connection to the main gas pipeline supplying the Kingdom. The Project also includes the consultancy services for investigation, design and supervision of construction. The Project started in September 2012, and the port is scheduled· to receive the first LNG shipment by the last quarter of 2014.

The total cost of the Port is estimated at about US$ 65 million, whereas the Kuwait Government Grant covers 100% of the total cost of the project.

By Signing these agreements, the total amount allocated from the amount of the grant would be about U.S. $ 1.17 million out of U.S. $ 1.25 billion in addition to the usual operations of the Fund represented in the number of loans provided by the Kuwaiti Fund for the Hashemite Kingdom of Jordan, which amounts to 26 loans worth a total of about 172 million Kuwaiti dinars, equivalent to about U.S. $ 584 million to finance projects in various sectors, in addition to 6 grants and technical assistance totaling about 3.1 million Kuwaiti dinars, equivalent to about U.S. $ 10.9 million to finance the preparation of the technical and feasibility studies for a number of economic projects.

LNG World News Staff, May 6, 2013; Image: MOP