Kuwait, a major OPEC member, has cancelled two gas projects due to a Coronavirus-induced policy to trim capital expenditure in the hydrocarbon industry, reports say.
Kuwait Oil Company (KOC), state company and owner of the projects, decided to abolish the two Jurassic 6 and 7 projects for the construction of processing facilities with a total capacity of 300 million cubic feet per day (cf/d), Zawya reports citing the Arabic language daily Alanba.
The cancellation according to the media is due to a Coronavirus-induced policy to trim capital expenditure in the hydrocarbon industry.
“KOC decided to cancel those projects as part of spending rationalisation plans and opt instead for expansion of the existing facilities,” Alanba said in the report.
The projects worth $2 billion, are located in the Northern oil-rich areas.
Should the two projects go ahead, KOC could reportedly reach free gas output capacity of 950 million cf/d in 2023.
Kuwait shelves two gas projects over lack of capital
