KPC seeks commissioning cargo for new Kuwait terminal

Kuwait's state-owned KPC is seeking a commissioning LNG cargo for delivery in early July to its newly built 22mn t/yr Al Zour terminal.

The firm is seeking a standard-sized or Q-Flex cargo, ranging between 137,300m³ and 228,800m³ (2.76-4.60 trillion Btu), for delivery on 5-6 July at the new facility. Offers on a des basis can be submitted as a fixed price by 12:00 Kuwait time on 14 June and will remain valid until 20:00 on the same day.

KPC had previously planned to bring the facility on line in March, but the project had suffered delays.

The commissioning of the new facility could give a boost to LNG demand in the Middle East, as it more than doubles receiving capacity. Only three terminals with a combined capacity of 14.9mn t/yr are effectively operating in the area — the 5.2mn t/yr Aqaba terminal in Jordan, the 4mn t/yr Jebel Ali facility in Dubai and Kuwait's 5.7mn t/yr Mina Al-Ahmadi terminal. Egypt's Ain Sukhna and Abu Dhabi's Al Ruwais terminals remain operational for security of supply reasons, but have only received sporadic cargoes in recent years.

It is unclear whether the terminal will be immediately able to operate at full capacity. KPC subsidiary Kipic, which manages the project, had previously said it planned to commission the plant in two stages, with only four of the eight 225,000m³ storage tanks being brought into operation in the first stage. The complex also comprises two jetties and four boil-off compressors.

The facility is being built by South Korea's Hyundai Engineering and state-controlled Kogas as part of a larger project that includes a 615,000 b/d refinery and petrochemical complex.

In December, Greek state-owned company Desfa was awarded a a contract for the maintenance and operation of the new Kuwaiti terminal, which has been named Liquefied Natural Gas Import (LNGI). The contract has a minimum duration of five years, Desfa said.

By Antonio Peciccia