MOPW implementing 167 projects

DOHA, Nov 30, (Agencies): Opec-member Kuwait may continue burning more fuel to fire power plants due to limited gas output, the chief executive of Kuwait Petroleum Corp (KPC) said on Tuesday. The Gulf Arab state does not have enough natural gas to meet power demand and burns a large volume of oil products at power stations. Like its oil-exporting neighbours, Kuwait has been slow to develop its gas reserves to meet domestic demand.

"The plan is to burn less oil than gas, but if worse comes to worse we will continue to use expensive fuel," Farouk Al-Zanki told reporters on the sidelines of an industry conference in Doha.

The world’s fourth-largest oil exporter, which has a shortfall of about 1 billion cubic feet of gas per day (cfd), burns an average 200,000 barrels per day (bpd) to 300,000 bpd of fuel oil and gas oil per year, Zanki said.

Zanki said he hoped Dorra gas field would help raise gas supplies.

The Gulf Arab state pumps around 1 billion cfd of gas from oilfields, and 145 million cfd from gas fields not associated with oil.

It plans to nearly quadruple its gas production to 4 billion cfd by 2030. Output from the Dorra field is included in the plans.

But that field is shared with Iran and has been a bone of contention between Kuwait and Tehran since the 1960s, and the two have yet to strike a deal on how to develop it.

Zanki said an announcement for the reshuffle of executives at Kuwait Oil Co (KOC) and KPC might take place in December.

Kuwait is plugging the gap between supply and demand with imports of liquefied natural gas (LNG).

Tight supply has been exacerbated by Opec-member Kuwait’s adherence to the producer group’s oil output restrictions since late 2008.

As most of Kuwait’s gas is a by-product of oil production, when it pumps less crude, it pumps less gas.

To counter this constraint, Kuwait is working on a scheme to increase output of non-associated gas fields to 1 billion cfd by 2016.

In February, state-run Kuwait Oil Company signed a five-year service contract with Royal Dutch Shell to develop gas fields in the country’s north.

Also: KUWAIT: Deputy Board Chairman and Chief Executive Officer of Kuwait Petroleum Corporation (KPC) Farouk Hussain Al-Zanki said Monday the KPC is looking forward to casting more tenders for mega oil projects in 2011 in the framework of the Kuwait’s development plan.

"While tendering for such projects, KPC is fully committed to all relevant legal procedures," Al-Zanki told reporters on the sidelines of MEED’s Sixth Annual Kuwait Projects Conference which opened earlier today at Marriott Hotel here.

"We are serious about the implementation of the ambitious strategy to meet the growing demand for energy on the local and global markets," he said, noting that the strategy helped expand corporation’s production capacity pretty well.

"The corporation’s targeted production capacity for 2020 is projected at four million barrels of oil a day,” Al-Zanki revealed, noting that state-owned KPC developed extended the strategy to 2030.

A large part of KPC’s budget for energy development has been set aside to the oil projects, such as the projects to enhance the refining capacity, protect environment and expand exploration and development activities, he noted.

Undersecretary of Kuwait Ministry of Public Works Abdulaziz Al-Kulaib said Monday the ministry is developing 167 projects as part of the country’s development plan.

"These projects involve investments of up to KD 1.8 billion," Al-Kulaib said in a presentation to MEED’s Sixth Annual Kuwait Projects Conference which opened earlier today at Marriott Hotel here.

Contracts of 35 projects, costing KD 600 million, have been signed in the period between early April and late September. "Preparations are underway to cast for tendering 64 projects involving some KD one billion of investments," he said.

The first stage of the implementation of Boubyan Harbor development project, costing KD 328 million, has started, Al-Kulaib pointed out, noting that his ministry embarked on working out the plans for linking the harbor to Kuwait City through a highway and a bridge over Khor Al-Sabbiya.

He expected the contract of Kheikh Jaber Bridge, formerly named as Al-Sabbiya bridge, to be signed by the end of 2010.

The first stage of the Boubyan Harbor project, costing KD 118, will complete in 2011 while the second stage, costing KD 328 million, will complete in 2014.

"The Ministry started receiving bids to develop Al-Zour power generating station; a final deal in this regard could be reached in January 2011" Al-Kulaib pointed out.

The ministry has completed over the last five years some 81 infrastructure projects costing KD 204 million.

The First Ring Road is expected to complete in next July while Al-Sabbiya Highway, costing KD 41 million, will complete in May, 2012, and Al-Jahra Highway, costing KD 25 million, will go operational in the first half of 2012.

The projects of Jamal Abdulnasser Road and Al-Nuwaisib Road, costing KD 161 million, are expected to be complete by February, 2011.

The designing work for the expansions of Kuwait International Airport, costing KD 25 million has been finalized, he went on to say.

Regarding the healthcare service, Al-Kulaib said the coming period would see the launching of eight new hospitals and the expansion of Al-Adan Hospital involving KD 700 million and KD 300 million respectively.

The top leaders of the state have instructed minimizing the red tape in order to accelerate the development process; this mission has been entrusted to Deputy Prime Minister for Economic Affair, Minister of State for Development Affairs and Minister of State for Housing Affairs Sheikh Ahmad Al-Fahad Al-Sabah.

The rate of realization of the targets of the development plan exceeded the previous expectations, ranging between 70 and 80 percent, Al-Kubaib concluded.

The two-day Kuwait Projects Conference 2010 is part of MEED’s comprehensive portfolio of large-scale summit events that offer businesses unique networking opportunities and facilitate the showcasing of solutions to key target groups.