Friday , January 19 2018

‘Shell Company to supply Kuwait with LNG for 15 years starting ’20’

PAI to probe, review salaries of its senior officials

KUWAIT CITY, Dec 26: Deputy Director of International Marketing Department at Kuwait National Petroleum Corporation (KNPC) Sheikh Khalid Al-Sabah disclosed that KNPC has signed an agreement with Shell Company for supplying Kuwait with liquefied natural gas (LNG) for 15 years starting from 2020 to 2035, reports Al-Anba daily.

Th is agreement makes the Dutch company one of the main suppliers of gas to Kuwait with quantity ranging from two million to three million cubic feet per year. Sheikh Khalid said this agreement will help Kuwait deal with its growing demand for energy and will enable Kuwait to fulfill its ambitious developmental plans.

He indicated that the agreement is in line with the strategy of Kuwait to protect the environment by increasing the dependence on clean sources of energy including natural gas, adding that the Shell Company is one among the pioneering companies in this field with more than 40 years of experience and a distinguished place in the international markets.

Sheikh Khalid revealed that the International Marketing Department is carrying out the final procedures related to the signing of similar agreements as part of the KNPC’s strategy to diversify the sources of energy. Regarding the prices of gas based on the agreement with Shell Company, he said it is part of the secret items that none of the two parties is allowed to reveal yet, indicating that the cost of LNG is not fixed but will change based on the oil prices. Meanwhile, Director of Liquid Gas Unit at the Al-Shuaiba Factory of Kuwait Oil Tankers Company (KOTC) Eng Ahmad Al-Baddah has unveiled the company’s plan to establish its third factory for filling gas cylinders, reports Al-Anba daily.

Al-Baddah revealed the company is currently looking for an appropriate location for the third factory which will most probably be established in Kabad. He said the new factory will cover the local market’s need for gas, indicating the annual household gas consumption increase is estimated at three percent. He added the company is now preparing a technical feasibility study on the new factory to determine the time dimension for covering the local market.

Furthermore, the Public Authority of Investment (PAI) is investigating and reviewing a number of contracts and the salaries of some of its senior officials, reports Aljarida daily quoting informed sources. Th ey said the Board of Directors pays great interest in abiding by the international criteria.

Th e sources revealed that some of the contracts signed between the authority and a number of consultants are being audited and some issues were noticed especially regarding the indemnity. They indicated that the dispute has not been settled yet despite the legal opinion that the PAI has the authority to assign and determine the indemnity and the conditions of the contracts, adding that they are expecting the Minister of Finance to decide on the issue within the coming few days.

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