Kuwait City, May 16 - Neftegaz.RU. Kuwait is preparing to borrow $3.3 billion from local and international banks to finance its LNG import project in the Al-Zour region near the border with Saudi Arabia.
State-owned Kuwait Integrated Petrochemical Industries Company has officially commissioned Kuwait National Bank and the Kuwait Finance House to manage a loan to finance a $1.25 billion project, while $1.56 billion will be borrowed from international banks, Kuwait Al-Seyassah newspaper reported.
The contracts will either be signed at the end of May or next month. It is estimated that the project will cost nearly $3.3 billion; 30 % of which will be self-financed by the Kuwait Petroleum Corporation and $2.3 billion in loans including 56 % from local banks and 44 % from external financing institutions and channels.
The sources explained that KIPIC has ended all negotiations and administrative and legal details related to the financing mechanism. According to the paper, the total amount of external borrowing is estimated at $1.1 billion, noting that the signing of foreign contracts is expected to take place in the middle of June.
Kuwait’s LNG project aims to help the country meet its power needs during the hot summer season. In December 2017, Kuwait Petroleum Corporation signed a deal with Shell to import LNG for 15 years.
