Greece’s gas grid operator DESFA has secured a contract from Kuwait’s state-owned KIPIC for the new LNG import terminal in the Al-Zour area.
DESFA, owned by a consortium led by Italy’s Snam, secured the contract following a tender KIPIC launched earlier this year.
The five-year contract includes the operation and maintenance of the LNG import plant.
DESFA did not disclose any financial details of the deal only saying it would jointly perform the services with Snam but also Enagas. The Spanish LNG terminal operator is also a shareholder in the consortium that owns DESFA.
LNG Prime understands the contract has a price tag of about $106 million.
To remind, Kuwait Petroleum formed KIPIC in 2016 to manage refinery, petrochemicals and LNG import operations in the giant Al-Zour complex.
The Al-Zour complex and the LNG import terminal are located some 90 kilometers south of the capital Kuwait City.
A South Korean consortium consisting of Hyundai E&C, Hyundai Engineering and Kogas is in charge of building the terminal.
It includes the construction of a regasification facility and eight 225,000-cbm LNG storage tanks. This makes it one of the largest LNG import terminals in the world.
KIPIC previously said it expected to launch the LNG import facility with a price tag of about $3 billion in 2020. However, some media reports suggest that the plant will start operations by the end of the first quarter next year.