Jordan and Kuwait both recently awarded Bermuda-registered Golar LNG contracts to supply LNG floating storage and regasification units (FSRUs). In Kuwait, Golar’s $213mn, 5-yr deal replaces a contract with Excelerate Energy, set to expire this year. Golar will send its 170,000 cubic meter Golar Igloo to Mina al-Ahmadi port and hydrocarbons hub in 4Q13 with operations to begin in March 2014. Kuwaiti state firm KNPC will use the FSRU to import LNG nine months per year but will allow Golar a three month winter window (when demand is low)to “pursue... short term business opportunities.”
Some 40% of Kuwait’s 1.13bn cfd gas production (about 450mn cfd) goes to fire domestic power plants; the remainder is used in Kuwait’s oil and petrochemical industries (MEES, 14 June). Kuwait’s refineries produce 187,000 b/d of fuel oil, all high sulfur (MEES, 19 March 2012), but of this 15,000 b/d goes to Pakistan. Furthermore, in summer when power demand is greatest, refinery output drops by up to 5% as high temperatures reduce efficiency. Kuwait’s power stations face a shortage of around 108,000 b/d during the peak summer months forcing the country to burn large quantities of high-export-value fuels. Up to 30% of the fuel mix is crude and gasoil. These factors drive LNG imports to around 500mn cfd during the summer months. (CONTINUED - 662 WORDS)
