Kuwait plans to increase capacity

By Jodie Humphries | 01/28/10 - 15:42

Oil production in Kuwait

In a bid to expand crude oil processing, Kuwait is planning to spend US$15 billion in upgrading domestic refineries over the next five years.

Kuwait Petroleum Corp. plans to expand capacity in Kuwait to 1.4 million barrels a day, Abdulaziz Al Attar, head of the state-owned oil company's Houston office, said at a conference in Houston today, Arabian Business states.

Kuwait, which is one of the founding members of the Organization of Petroleum Exporting Countries, said in December that it planned to spend US$87.6 billion on energy projects in the next 20 years to attract global companies and boost oil production.

Kuwait Petroleum has three domestic refineries with a total capacity of about 940,000 barrels a day, Al Attar said.

Kuwait Oil Tanker Co

Only a few days ago, Kuwait Oil Tanker Co (KOTC) announced their plans to spend around US$104 million on a new liquefied natural gas plant in north Kuwait.

"The project will employ the latest technologies in the LNG industry Kuwait's Central Tenders Committee is working out the procedures of the tender of the new project," KOTC's Deputy Chairman Sheikh Ali Humoud Al-Sabah is reported as saying, Arabian Oil and Gas reported.

Al-Sabah also said that the project will be put out to tender with the successful bidder being announced in the second half of 2010.

Kuwait Oil and Gas Report Q1 2010

The latest Kuwait Oil & Gas Report forecasts that the country will account for 2.68 percent of Middle East regional oil demand by 2014, while providing 10.65 percent of supply. Regional oil use of 8.24mn barrels per day (b/d) in 2001 rose to an estimated 11.38mn b/d in 2009. It should average 11.66mn b/d in 2010 and then rise to around 12.68mn b/d by 2014.

In terms of natural gas, the region consumed an estimated 406.5bn cubic metres (bcm) in 2009, with demand of 545.1bcm targeted for 2014, representing 34.1 percent growth. Estimated production of 420.6bcm in 2009 should reach 652.8bcm in 2014.

The report stated, "Between 2009 and 2019, we are forecasting an increase in Kuwaiti oil production of 45.1 percent, with crude volumes rising steadily to 3.65mn b/d by the end of the 10-year forecast period."

Like this article? Get the RSS feed:

blog comments powered by Disqus

Editors Choice

Latest Infographics