Page 4 - MEOG Week 04 2023

MEOG COMMENTARY MEOG

KGOC completes pipeline

phase amid PNZ push

A pipeline running from the Partitioned Neutral Zone has been hooked
up to the Kuwaiti gas network as efforts continue to ramp up production

KUWAIT THE Kuwait Gulf Oil Co. (KGOC) has com- “boost optimum use of the petroleum resources”
pleted the second phase of a pipeline carrying in the PNZ while meeting “local needs for gas,
gas from fields shared with Saudi Arabia to the particularly at peak consumption times”. KGOC
WHAT: emirate’s domestic processing facilities. praised its partner in the Khafji Joint Opera-
The second phase of Company sources told the local Al-Anba Ara- tions (KJO), Saudi Aramco subsidiary Aramco
the Khafji gas pipeline bic language newspaper that the second phase Gulf Co-operation Co. (AGOC), for its help in
has been completed, increases pipeline’s capacity by 16mn cubic feet “accomplishing the high feasibility gas project”.
connecting PNZ gas to (0.45mn cubic metres) per day of gas and 6,000 Meanwhile, early last year, the developers of
Kuwait’s grid. barrels per day (bpd) of LPG. This takes capac- the Wafra oilfield in the onshore PNZ agreed
ity to 40mmcf (1.13mcm) per day following the to export surplus gas from the asset. A memo-
WHY: completion of the 24mmcf (0.68mcm) per day randum of understanding (MoU) was signed
Flows are in high demand first phase in Q3 2021. between KGOC and Saudi Arabian Chevron
given the country’s (SAC), which represent Kuwait Oil Co. (KOC)
reliance on LNG imports. PNZ pipeline and Saudi Aramco in the Wafra Joint Operations
They said that the 12-inch (305mm) pipeline (WJO) area.
WHAT NEXT: has a total length of 109km, running through KGOC’s deputy CEO Muhammad Salem
Kuwait and Riyadh are around 4km onshore the Partitioned Neutral Al-Haimer said that gas flows are expected to
aiming to significantly Zone (PNZ) from the Al-Khafji field’s gathering begin at 12mmcf (0.34mcm) per day, rising over
increase joint gas facilities, then 47km offshore to Al-Zour, the to 40-50mmcf (1.13-1.4mn cubic metres) per
production via the shared location of the country’s new downstream hub, day and reaching 80-100mmcf (2.27-2.8mcm)
Dorra field. and 58km onwards alongside major infrastruc- per day within four years.
ture that runs north to the capital. More controversially, in December, AGOC
The latter section is 24 inches (610mm) in and KGOC signed an MoU on the development
diameter and connects to processing and puri- of the Dorra gas field, which is also claimed by
fication units at the Mina Al-Ahmadi Refinery. Iran where it is known as Arash.
When the first phase of the pipeline was com- The MoU followed a statement of intent ear-
pleted in late 2021, KGOC said that the conduit lier in 2022 during a visit to Kuwait by Saudi
had been linked up to networks belonging to sis- Crown Prince Mohammed bin Salman when
ter company Kuwait Oil Co. (KOC). the parties agreed to “leverage modern technolo-
It said that operating the pipeline would gies” to increase gas production from the asset to

P4 www. NEWSBASE .com Week 04 25•January•2023