Shell, BP Sign LNG Supply Deals with Kuwait
Royal Dutch Shell and BP have signed deals to supply Kuwait with liquefied natural gas (LNG) over the next few years, a Kuwait Petroleum Corp. (KPC) official was quoted as saying on Sunday.
Kuwait began importing LNG in 2009 and signed deals for Shell and Swiss-based trader Vitol to supply it during the peak power demand period from April to October over the last four summers.
Jamal Al-Loughani, deputy director of marketing at KPC, told the Kuwaiti Al-Seyassah newspaper that Shell and BP have been contracted to supply the OPEC member country over the next 5-6 summers.
He said the total volume of super-cooled gas to be delivered between the two companies would be around 2.5 million tons a year.
Kuwait will sign another contract to buy LNG from a third company later this week, he said, without elaborating.
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.
Copyright Reuters 2014.
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