A Kuwait Petroleum Corporation official said on Wednesday that the corporation is offering buyers the option of ship-to-ship (STS) transfer of cargo outside the Strait of Hormuz, to ensure safe transportation to final destinations.
Imad Al-Kandari, Deputy Managing Director of Global Marketing at the Kuwait Petroleum Corporation, said during the APEC conference for the energy sector: “When conditions are safe, we pass some ships through the Strait of Hormuz, and we also provide options for conducting ship-to-ship transfers outside the strait.”
Al-Kandari did not specify the petroleum products sold through ship-to-ship transfers.
Documents seen by Reuters showed that the company recently offered shipments of naphtha on a delivery-on-ship (DES) basis in a small number of tenders during the months of August and September.
Market sources said some of its cargoes were sold at premiums of up to $60 per ton above Japan's reference prices on a delivered basis.
Before the outbreak of war between the United States and Iran, Kuwait Petroleum Corporation usually offered naphtha on a free-on-board basis. It resumed shipments in June for the first time since tensions began in February.
Data from ship tracking company Kpler showed that Kuwait exported an average of 200,000 barrels per day of naphtha in the first two months of this year, a number that dropped to zero in April. In the past two months, its exports remained at half the pre-tension levels.
The Kremlin said on Wednesday that European countries found themselves in a difficult situation amid rising gas prices, while they could buy gas at lower prices from Russia.
Natural gas prices in Europe have witnessed a sharp rise in light of the Iran war, reaching their highest levels since late 2022 last week, when the outbreak of the conflict in Ukraine led Europe to stop importing Russian gas via pipelines.
Kremlin spokesman Dmitry Peskov said that Europe is harming itself by purchasing gas at high prices according to spot prices, instead of resorting to the less expensive Russian option.
Companies specialized in the sector of equipment, transportation solutions and logistics services are moving to enhance their investments in the local market, with the growing demand for machinery and heavy equipment and the expansion of infrastructure projects and logistics services, in conjunction with the Kingdom’s move towards localizing vehicle-related industries.
In this context, General Contracting Company (GCC), one of the Olayan Group companies, is preparing to expand its business in Saudi Arabia, by developing new sites and manufacturing facilities, in addition to hiring new cadres, at a time when its annual sales in the local market reach about one billion riyals ($266 million).
The General Director of the General Contracting Company, George Fawaz, told Asharq Al-Awsat that the volume of planned investments in the GCC countries during the next three years “will exceed 250 million riyals ($66 million),” noting that they will focus mainly on developing new sites, manufacturing facilities, and employing new cadres.
The General Contracting Company is a Saudi company specializing in transportation solutions, heavy equipment and machinery, and representing international brands. It is working to expand its presence in the Saudi market, which is the largest in the GCC countries and the Middle East and North Africa region.
Regarding the targeted sales volume in Saudi Arabia, Fawaz said that the company is currently achieving sales in the range of one billion riyals ($266 million) annually, adding: “We expect our sales to gradually increase with the expansion of the economy and the growth of the Saudi market, and we expect to keep pace with this expansion and even exceed it.”
Regarding Saudi Arabia’s trend towards localizing the vehicle industry, Fawaz stressed that “localization is our main goal currently,” explaining that the company is working to localize the assembly and manufacturing operations of components in Saudi Arabia, in addition to employing local competencies.
He added that this represents a “major project” that the company is currently working on, expecting construction work to begin during the year 2027.
Fawaz refused to disclose the size of the investment allocated to the project, explaining that it is a “major investment” that will begin implementation in 2027, and its completion is expected to take about a year to a year and a half.
Regarding whether the company views Saudi Arabia as a major market for sales or a regional center, Fawaz said: “In reality, it is both.”
He explained that the Saudi market “is the largest in the GCC countries and in the Middle East and North Africa region,” which makes it an important market for the company, noting that the company, as a distributor and then a manufacturer in the future, will use Saudi Arabia as a center for manufacturing, supply and distribution to the entire region.
The Saudi Warehouse and Logistics Services Exhibition will be held in Riyadh, from September 8 to 10, at the Riyadh International Convention and Exhibition Center, under the patronage of the Minister of Transport and Logistics, Engineer Saleh Al-Jasser, and brings together sector leaders, companies and experts to review the latest technologies and solutions in the fields of warehouses, logistics services and supply chains.
