Kuwait has signed a $2.9bn deal with three South Korean firms for the construction of the country’s largest liquefied natural gas import facility.
The project at the Al-Zour refinery near the border with Saudi Arabia was awarded to Hyundai Engineering Co, Hyundai Engineering & Construction Co and Korea Gas Corp.
Kuwait National Petroleum Co chief executive Mohammad Al-Mutairi said the costs of the project would be split $142m for engineering, $965m for importing and $1.67bn for construction.
He said the development, which is scheduled for completion in Q1 2021, would require the building of installations for importing 3,000 British thermal units of LNG per day to meet growing domestic demand for gas.
Despite its oil wealth, estimated at 7 per cent of the world’s proven reserves, Kuwait lacks enough natural gas production to meet its domestic needs.
It imports LNG every year to supply power plants and its petrochemicals industry.
The gas facility will be part of the Al-Zour mega complex, consisting of a 615,000 barrel-per-day refinery and a petrochemicals plant. The total cost of the complex is expected to reach $30bn.
Kuwait previously awarded $13.2bn of contracts in October to 10 international firms to build the refinery, which is scheduled for completion in late 2019.
The country has also signed a framework deal with BP to explore joint opportunities for investment in future oil, gas, trading and petrochemicals ventures.
Under the deal, Kuwait Petroleum Co and BP will also study opportunities for joint investment in future oil and gas exploration within the country and globally.