Page 11 - GLNG Week 28 2021
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GLNG MIDDLE EAST GLNG
First LNG cargo arrives at Al-Zour
PROJECTS & KUWAIT’S new regasification terminal at cubic metres per day of gas.
COMPANIES Al-Zour received its first shipment of LNG this Imports of LNG are seen playing a major role
week as work remains ongoing to prepare per- in Kuwait’s aim to increase the use of cleaner
manent units for start-up. fuels, with the same aim aided by the recent com-
According to the Kuwait News Agency pletion of its $15.7bn Clean Fuels Project which
(KUNA), state-owned Kuwait Integrated Petro- covered the overhaul and expansion of its two
leum Industries Co. (KIPIC) received a 213,000 key existing oil refineries.
cubic metre cargo of Qatari LNG at its LNG The $16.1bn Al-Zour complex will also be
Import (LNGI) terminal. A KIPIC spokesman home to a 615,000 barrel per day (bpd) refinery
said that the firm was expecting to receive a sec- that is due for commissioning later this year.
ond consignment of Qatari gas, this time on a KIPIC had set a target commissioning date
vessel with a capacity of 217,000 cubic metres. of late 2020 for the refinery but this was pushed
The news follows reports that KIPIC’s parent, back to Q1 2021 as restrictions relating to coro-
Kuwait Petroleum Corp. (KPC) had contacted navirus (COVID-19) slowed progress. The refin-
traders last month for a cargo delivered ex-ship ery’s first mini refining unit will begin operations
(DES). in November, as it gradually ramps up ahead of
The 22mn tonne per year (tpy) facility is part being fully operational at the end of Q1 2022.
of a massive new downstream hub at Al-Zour Meanwhile, a 2.8mn tpy petrochemical
developed by KIPIC which was set up for the facility is expected to follow, with a provisional
purpose. date set for 2024 on units that will be capable
LNGI is home to eight storage tanks with a of producing 1.4mn tpy of paraxylene (PX),
capacity of 225,000 cubic metres and a regas- 940,000 tpy of polypropylene (PP) and 420,000
ification facility capable of processing 3bn tpy of gasoline.
QP strikes yet more LNG supply deals
PROJECTS & STATE-OWNED Qatar Petroleum (QP) struck
COMPANIES two more long-term supply deals over the past
week.
On July 7, the company said it had entered
into a 15-year LNG sale and purchase agree-
ment (SPA) with Taiwan’s CPC for the supply of
1.25mn tonnes per year of LNG. This was fol-
lowed by a 20-year SPA with Korea Gas (Kogas)
for the supply of 2mn tpy of LNG, announced
on July 12.
Deliveries under the SPA with CPC are
scheduled to begin in January 2022, while the
deal with Kogas will see supplies starting in Jan-
uary 2025.
QP noted in separate statements that CPC Shell to supply 1mn tpy of LNG to China at the
has received more than 63mn tonnes of LNG end of June, and a separate supply agreement
from Qatar to date since trade between the two with China’s Sinopec covering 2mn tpy over a
countries began in 2006, while South Korea had 10-year period in March, among others.
taken delivery of nearly 185mn tonnes of Qatari According to BP’s ‘Statistical Review of World
LNG. This equates to more than 2,500 LNG car- Energy 2021’, which was released last week, Qatar
goes sent from Qatar to South Korea since 1999. exported 106.1bn cubic metres of LNG last year.
Qatar currently supplies Kogas with more This makes the country the second-largest LNG
than 9mn tpy of LNG through long-term agree- exporter of 2020, narrowly losing out to Aus-
ments, and is the largest seller of the super- tralia, which exported 106.2 bcm over the year.
chilled fuel to South Korea. However, QP’s North Field East project will raise
The deals are the latest in a string of supply Qatar’s liquefaction capacity from 77mn tpy to
agreements announced by QP in recent months 110mn tpy, cementing the country’s position as
as the company works to bolster its dominance the global LNG leader. Meanwhile, Australia is
of the global LNG export market and expand expected to struggle to maintain feedstock gas
liquefaction capacity. The Qatari company also supplies to its liquefaction terminals as the dec-
announced a 10-year deal with Royal Dutch ade progresses.
Week 28 16•July•2021 www. NEWSBASE .com P11
