After the inauguration of the giant liquefied gas facilities project in the Al-Zour oil complex, the Petroleum Corporation accumulated an unexpected debt of more than one billion dinars owed by the Ministry of Electricity and Water (MEW), Al-Rai daily reported.
Informed sources revealed to the daily that Oil Ministry is charging MEW the capital cost of the liquefied gas project, which is estimated at USD 2.93 billion, in addition to the value of the gas that it will import for the project’s facilities.
The oil ministry based its claims on MEW on the fact that the project is implemented to reduce the cost of fuel used in power plants when importing the necessary quantities of liquefied natural gas to replace gas oil, which contributes to reducing the cost by about KD 700 million annually until 2040, equivalent to 2 million dinars per day.
So far, the MEW has not shown any indications that it accepts or rejects the claims of the Oil Ministry but indicated that it should refer it before expressing any position to the Audit Bureau and the Fatwa and Legislation Department to foresee the legal and supervisory opinion, in addition to reviewing the Ministry of Finance as it will be concerned with covering these amounts in the budget
SOURCE : TIMES KUWAIT