KNPC assumes control over LNG storage facilities in Shuaiba and Umm Al-Aish from KOTC
Kuwait National Petroleum Company Takes Control of LNG Plants
In a significant move for Kuwait's energy sector, the Kuwait National Petroleum Company (KNPC) has taken full ownership and operational control of the Shuaiba and Umm Al-Aish liquefied natural gas (LNG) cylinder filling plants. This transfer, announced on Friday, is part of a comprehensive restructuring led by the Kuwait Petroleum Corporation (KPC).
Wadha Al-Khatib, CEO of KNPC, described the move as a strategic step that strengthens cooperation and integration between the country's major oil companies. The handover includes the full workforce and ongoing operations of the LNG plants, including local marketing and distribution of liquefied gas.
The facilities were previously operated by the Kuwait Oil Tanker Company (KOTC), which demonstrated dedication to overcoming logistical and administrative hurdles in support of the sector's long-term goals. Al-Khatib praised the cooperative approach and efforts of KOTC in facilitating a smooth transition.
The transfer aligns with KPC’s broader restructuring initiative, which also includes plans to merge the Kuwait Integrated Petroleum Industries Company (KIPIC) into KNPC. This consolidation is intended to boost organizational effectiveness under a unified management structure.
Accommodating increased domestic demand for LNG cylinders, driven by population growth and new residential development, is the background for this transition. The Shuaiba plant, operational since 1985 with a production capacity of 13 million cylinders annually, and the Umm Al-Aish plant, launched in 2015 and increasing production capacity by about 160%, are crucial assets for meeting this demand. Integrating these facilities under KNPC directly supports strategic national energy goals and operational optimization in line with KPC’s restructuring vision.
A unified team spirit and shared commitment to excellence will be ensured among all employees. This move ushers in a new phase of collaboration and integration, supporting future projects and expanding business opportunities within the oil sector. The milestone allows KNPC to broaden the scope of its operations, strengthening the operations of the LNG plants and potentially improving the efficiency and profitability of the Kuwaiti oil sector.
The expected integration of KIPIC is progressing according to a structured plan and timeline. The restructuring initiative under the Kuwait Petroleum Corporation (KPC) may involve further changes in the management and operations of other oil facilities in Kuwait. The process of transferring employment contracts for plant staff has already begun and will be finalized in the coming days.
The announcement was reported by Al-Rai daily, and this strategic step reflects KPC’s strategic restructuring to improve efficiency, foster subsidiary integration, and position Kuwait more competitively in the global energy market.
The Kuwait National Petroleum Company (KNPC) acquires control of the LNG plants' operations, integrating them to strengthen cooperation within the country's major oil companies. This move, in accordance with the Kuwait Petroleum Corporation (KPC)'s restructuring vision, also involves finance, as the future operations are expected to boost the profitability of the Kuwaiti oil sector.
In the context of the industry's response to increased domestic demand for liquefied natural gas, the handover of the Shuaiba and Umm Al-Aish LNG plants to KNPC is a strategic energy investment aimed at operational optimization and national energy goals.
