Kuwait Oil Company recently inaugurated a new gas pipeline from northern Kuwait to Mina Al-Ahmadi Port as part of larger plans to invest in oil and gas infrastructure. The company, owned by Kuwait Petroleum Corporation, did not provide details on the specific project.
Kuwait reportedly plans to invest $19 billion over the next seven years on 10 major oil and gas projects. Some projects have already started while others are in the process of launching. This includes developing Jurassic gas facilities for $1.1 billion and building a sixth liquefied petroleum gas production unit for $1.7 billion.
Kuwait aims to increase natural gas production to meet local demand, according to Kuwait Oil Company's acting CEO. Kuwait Petroleum Corporation's CEO said Kuwait currently produces 650 million cubic feet of gas per day but plans to increase that to 1 billion cubic feet.
However, political discord between the government and parliament has hindered efforts to diversify the economy away from oil and stalled fiscal reform. Recently, Kuwait's Emir accepted the government's resignation after opposition lawmakers won a majority in parliamentary elections.
Kuwait's proposed 2023/24 budget forecasts a $16.3 billion deficit compared to an expected $4.4 billion surplus for the current fiscal year. Revenues are projected to reach $69.2 billion while spending is estimated at $85.7 billion, up 11.7%.
Despite this, ratings agency Fitch affirmed Kuwait's AA- rating with a stable outlook, citing the country's "exceptionally strong fiscal and external balance sheets."
