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Kuwait Signs LNG Import Deal With Shell

Kuwait Signs LNG Import Deal With ShellKuwait Signs LNG Import Deal With Shell

Kuwait Petroleum Corp. signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand. The sales purchasing agreement with Shell International Trading Middle East Ltd. will start in 2020, the companies said on Sunday in an emailed statement, Bloomberg reported. Shell has supplied Kuwait with the super-cooled fuel since 2010 and declined to say how much gas is covered under the new contract. While KPC is working to boost local natural gas production, Kuwait has a pressing requirement to secure natural gas supplies in the meantime, they said. LNG could help meet Kuwait’s domestic demand for power to run air conditioners during hot summer months and cut the amount of crude oil burned instead of exporting it for profit. The contract will cover 2-3 million tons of LNG a year, priced at 11% below a Brent benchmark, a person familiar said, asking not to be identified because terms of the deal are private.

 

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