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Kuwait Petroleum Corporation (KPC) hopes to secure long-term supply contracts with Asian buyers, a primary concern driving efforts to build JV refineries in the Gulf state’s crude markets. It hopes to secure such deals with or without finalizing the planned JVs.
Kuwait this week signed a 10-year crude supply deal with China. It hopes to export 500,000 b/d to China within three years, more than double current volumes (see table).
KPC’s Managing Director of International Marketing, Nasir al-Mudhaf, said that an agreement had been reached with Sinopec to supply 300,000 b/d: “This agreement is one of the most important crude contracts for KPC, and is considered the biggest sales deal by volume and revenues in all regions,” he is quoted by Kuwait’s state news agency, KUNA. Volumes may increase to 800,000 b/d, he says, if Kuwait Petroleum International (KPI) is able to move forward with plans for a 300,000 b/d joint venture refinery with Sinopec in Zhanjiang in China’s southern Guangdong province. While the plans remain shaky, the Kuwaiti side was recently pulled back to the negotiating table by indications that China will agree to build an integrated petrochemicals plant at the refinery (MEES, 13 June).
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