The Kuwait Gulf Oil Company (KGOC) has announced the start-up of a pipeline to transport 24mn cfd of gas from the Partitioned Neutral Zone’s (PNZ) offshore Khafji field to power plants at Al Zour. The PNZ is jointly operated by Saudi Arabia and Kuwait, with the offshore portion managed by Khafji Joint Operations (KJO). Additional gas volumes are key for Kuwait, which is increasingly turning to LNG imports to offset domestic shortages.
The completion of the 100km pipeline is also notable as it will help reduce Khafji flaring. When Saudi Arabia shut down operations at Khafji in 2014 amid a dispute over PNZ management, the closure was ostensibly due to environmental concerns including gas leaks (MEES, 31 October 2014). Khafji production only resumed in early 2020, and crude oil output is currently around 115,000 b/d (MEES, 6 August). (CONTINUED - 134 WORDS)