Tuesday, April 27, 2010

Kuwait targeting 4 billion cubic feet of gas to by 2030


Kuwait is planning to increase a natural gas production to four billion cubic feet per day by 2030, said Deputy Chairman and Deputy Managing Director for Planning and Gas in Kuwait Oil Company, Mohammad Hussain.

Kuwait currently produces 130-150 million cubic feet of natural gas, and aims to reach one billion cubic feet by 2015, he told attendees of the 18th Middle East Petroleum and Gas Conference in a presentation entitled 'KOC Future Gas Strategy Roadmap'.

Apart from its major source of income; oil, Kuwait looks to benefit from a much larger production scale of its natural gas wealth, yet this will be faced by obstacles.

Hussain said that these challenges are improving local technology related to natural gas, dealing with excess sulphur left as a result of exploration, how to provide adequate storage facilities able to deal with the large quantities of gas projected and developing the local taskforce.

The target is to be conducted in three phases the first of which has already been achieved, and work is underway on the second.

On the other hand, Iran and Kuwait are in talks to build a 570 km long pipeline to transport Iranian gas to Kuwait.

The head of the National Gas Export Company of Iran Mohammad Reza Zadeh declared to the website of the Middle East Economic News that the negotiations brought positive results, but added that the two sides failed to agree on the price of Iranian gas source so far.

He pointed out that after several rounds of negotiations, agreement was reached on the transfer of 8.5 million cubic meters of gas from South Pars gas field to Kuwait.

It is worth mentioning that Kuwait has repeatedly voiced its interest in importing natural gas from Iran because of the high domestic demand.

The Chief Executive of KPC, Saad Al-Shuaib, said the importation of natural gas (LNG) began the first of April the current rate of 500 million cubic feet per day for the purposes of generating electricity during the summer. Al-Shuaib said in a statement to reporters that import operations will continue until next October, pointing out that there are three international companies for Kuwait to supply its needs of gas.

On the oil production side, Kuwait Oil Minister and Information Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah said that Kuwait currently has the capacity to produce three million barrels of oil a day.

The minister Abdullah told reporters that there is good news (related to oil discoveries) that will be announced in a timely manner, pointing out that this news is not just about Burgan, but all areas of Kuwait.

The opening of the (compilation center 24) is a step in the way of KPC strategy efforts to increase production capacity to 4 million barrels of oil per day by 2020.

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