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KNPC takes over two LNG plants from KOTC

publish time

06/09/2025

publish time

06/09/2025

KNPC takes over two LNG plants from KOTC

KUWAIT CITY, Sept 6: After the Kuwait National Petroleum Company (KNPC) officially took over the two liquefied natural gas (LNG) cylinder filling plants in Shuaiba and Umm Al-Aish from Kuwait Oil Tanker Company (KOTC) on Aug 1, KNPC is now considering the expansion of both plants or the establishment of a third. Reliable sources told the newspaper that this move is in light of the population growth and the economic openness the country is currently experiencing, particularly with the decision to open tourist, commercial, and family visas. Sources said the transfer of the two gas plants from KOTC to KNPC was completed smoothly, while confirming that such will increase the profits of KNPC in the coming years.

Sources indicated that the integration of the two gas plants under the umbrella of KNPC offers several advantages, including more efficient spending, unified marketing efforts, and reduced pollution risks. Sources added that the transition will allow KOTC to focus on its core role as the national carrier of oil and gas through its fleet. Sources explained that Kuwait Petroleum Corporation (KPC) proposed the idea of the merger several years ago, but it only took effect about a year ago, following the formation of specialized committees, culminating in the official transfer in early August.

Sources indicated that KNPC intends to increase the number of gas branches due to the rising number of new residential cities, especially since there are only 83 branches at present. In a related development, sources affirmed that the merger of oil companies affiliated with KPC is progressing as planned. They said the next step will be the integration of Kuwait Gulf Oil Company (KGOC) into the global oil giant, Kuwait Oil Company (KOC). The newspaper obtained a copy of the 2025 annual report of KPC, stating that the production volume of the two liquefied gas cylinder filling plants in Shuaiba and Umm Al-Aish reached about 17.9 million cylinders in fiscal 2024/2025 -- an increase of 3.15 percent compared to the previous fiscal year, while the distribution rate of 12-kilogram gas cylinders used in homes reached around 6.654 million. The report revealed that the quantity of liquefied gas consumed during the past year reached 204,010 metric tons, compared to 195,538 tons the year before.

By Najeh Bilal
Al-Seyassah/Arab Times Staff