Gas stays best strategic option to work stations’ – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

Gas stays best strategic option to work stations’ – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

KUWAIT CITY, Sept 28: Oil sources said despite the continued rise in global gas prices to $25 in Asia per million British thermal units (btu), compared to the price of two dollars a month ago, in light of many factors, gas will remain the best strategic option for Kuwait, whether economically or environmentally to operate power stations. The sources told Al-Rai that the increase in prices only reduces the profitability difference between selling products and importing gas, explaining that the gas pricing equation represents 11% of the price of Brent crude, but the prices of sales contracts are lower in long-term contracts than the announced price.

The sources stressed that “even with the high announced prices, gas remains the best option, as the cost of burning oil products to operate power stations is much higher than gas prices, even after the rise in gas price, as the sale of these products achieves higher returns than gas prices,” noting that “the KPC has signed a 15-year contract with the Qatar Petroleum Company to import 3 million tons/year of liquefied natural gas, through the Al-Zour port — a contract that will ensure Kuwait’s needs are met in future.