(Adds KPC spokesman, planned BP deal)
KUWAIT May 11 Kuwait's state oil group said it
signed a six-year liquefied natural gas (LNG) supply deal with
Royal Dutch Shell on Sunday, worth an estimated $12
billion, as the major oil exporter seeks to meet energy demands
for the hot summer months.
The deal between Kuwait Petroleum Corp (KPC) and Shell was
reported last month in a Kuwaiti newspaper but with no financial
KPC also plans to sign a $3 billion deal LNG supply deal
with BP on Monday, said Nasser al-Mudaf, head of KPC's
international marketing division.
He did not provide the volume of the super-cooled gas that
would be supplied by the companies. A Shell spokesman said he
could not comment on details of commercial agreements.
Kuwait wants to burn LNG instead of resorting to diesel and
crude oil, which have higher harmful emissions, KPC said in a
statement announcing the Shell deal.
Kuwait began importing LNG in 2009 and signed deals with
Shell and Swiss-based trader Vitol to supply it from April to
October, the period of peak power demand, for the last four
Surging air conditioning demand in the scorching Middle
Eastern summer and a lack of domestic supply mean Kuwait needs
to import more gas each year to feed its power plants.
Kuwait signed an LNG deal with fellow Gulf state Qatar last
(Reporting by Sylvia Westall and Ahmed Hagagy in Kuwait and
Rania El Gamal in Dubai; Editing by Rosalind Russell)