Kuwait Gulf Oil Co (KGOC) signed a contract with France's Technip to build gas facilities in Khafji, part of a plan to boost gas output for growing domestic needs, industry sources told Reuters on Wednesday.

KGOC, a unit of Kuwait Petroleum Corp operates in the Neutral Zone shared by Kuwait and Saudi Arabia through the al-Khafji Joint Operations Co with Aramco Gulf Operations, a subsidiary of Saudi Aramco.

The signing took place this week, the sources said, after the contract was awarded to the French firm on Jan. 17 to build gas and natural gas liquids (NGL) facilities in Khafji, which will carry 40 million standard cu ft per day (MMscfd) of gas via pipeline to Kuwait.

The contract value was not immediately available but one source said Technip offered a highly competitive bid.

Kuwait, in gas-deficit, plans to nearly quadruple its gas output to more than 4 billion cubic feet per day (cfd) by 2030, which will include 0.5 billion cfd from Dorra, which it shares with neighbouring Saudi Arabia. – Reuters