Dorra Shelved Despite Supply Needs

News: Saudi Arabia and Kuwait have put their joint project to develop the Dorra gas field on hold, reports Reuters, citing a senior Kuwaiti energy source. The move follows disagreements between the two over transport of gas from the field, which is located between the countries. Saudi Arabia's demand that gas be piped to Khafji on the Saudi side of the border, before being piped to Kuwait, goes against the initial plan of sharing the gas at an offshore facility and pumping via separate pipelines to the project partners. Saudi Arabia's proposed route has raised security concerns for Kuwait's share of supply. However, the original plan to pump its share direct to a Kuwaiti beach is also stuck due to land disputes between energy companies. Saudi Arabia's plans to raise its gas production capacity rely heavily on LNG imports expected to come from Dorra, while the failure of the project is likely to raise Kuwait's costly LNG imports from the global market.

This article is tagged to:
Sector: Oil & Gas
Geography: Saudi Arabia, Kuwait

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