Abstract

The Mina Al-Ahmadi LNG terminal was built utilising an existing Pier, known as the South Pier and located approximately 40km due south from Kuwait City. As detailed the LNG Terminal was built as a short-term solution until future developments of domestic gas reserves could be met. Mina Al-Ahmadi South Pier LNG Terminal was the Middle East's first-ever Liquefied Natural Gas (LNG) receiving facility and the third such Regasification Facility (Dockside). The facility was designed and constructed under Engineering, Procurement and Construction (EPC) Agreement signed March 31st, 2008 between Kuwait National Petroleum Company (KNPC) and Excelerate Energy.

A Regasification Facility was chosen as this solution allowed a reduction in capital costs together with shorter development and construction timelines compared to conventional onshore LNG facilities.

At the Mina Al-Ahmadi South Pier LNG Terminal Facility, a Floating Storage and Regasification Vessel (FSRU) is supplied LNG cargoes via conventional LNG Carriers across-the-dock cryogenic ship-to-ship Transfer System with the LNG Transfer Rates to a maximum of 5,000m3/hour through two FMC Cryogenic Liquid Transfer Arms.

The Mina Al-Ahmadi Gasport solution was built in short order for a market in need of LNG. The Gasport answer allowed Kuwait to receive and send out their regasification requirements at a unit Capex cost that was more favourable than the traditional onshore LNG Storage/Regas Plant.

Background

In 2000, the Kuwait agreed upon the construction of a 600-Kilometer subsea pipeline under a memorandum of understanding for Kuwait to import natural gas. The project failed to materialise.

The failure of the subsea pipeline prompted Kuwait to look at an alternative supply. At the time gas consumption in Kuwait was increasing by at least five percent every year. This rapid upsurge in the Kuwait gas consumption was mainly down to the industrial sector and an increase of population of nearly three percent.

In 2008, it was recorded that Kuwait consumed approximately 449 BCF1 of natural gas. Previously the annual natural gas consumption had matched production but the increase in electricity resulted in demand outpacing supply. This was observed especially during the summer months. The inability to match the mandate resulted in shutdown of the refinery and petrochemical operations so that the demand could be met at high peak periods.

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