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Asia: Kuwait's KPC awards $553 mil LPG tank contract to S Korea's GS E&C

https://www.chemnet.com   Mar 11,2011 Platts
Kuwait Petroleum Corporation through its subsidiary Kuwait National Petroleum Company has awarded South Korea's GS Engineering & Construction Co. a Won 620 billion ($553 million) contract to build 10 LPG storage tanks, a source at the South Korean company said Thursday.

"We received a letter Tuesday about their [KNPC] decision to award us the contract," said the source, adding that construction work is expected to commence within a month from the signing of the contract.

The contract, which mandates that work be completed within 40 months, entails GS to dismantle and dispose an existing six LPG tanks at Mina Al Ahmadi, and replace them with 10 new-build tanks.

Each tank will have capacity to hold around 75,000 cubic meters of LPG, and while five tanks are for propane, the rest will hold butane. Of the six tanks slated for disposal, three are for propane and the rest for butane.

How much additional capacity would be added following the completion of the project could not be immediately ascertained though. "Each new tank is of a bigger capacity than the one they will be replacing," noted the source.

Platts reported end-February quoting a Middle Eastern source close to KPC, that the Kuwaiti state-owned company would likely skip spot sales of March loading refrigerated LPG cargoes on lower output led by production hiccups and ongoing maintenance of its LPG storage tanks.

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