KNPC takes over LPG filling plants in major oil sector merger
The ownership of the Umm Al-Aish and Shuaiba liquefied petroleum gas (LPG) cylinder filling plants has been taken over by the Kuwait National Petroleum Company (KNPC) from the Kuwait Oil Tanker Company (KOTC) according to a contract that has been finalized.
Informed sources told Al-Rai that this transfer is a key step in the larger merger between KNPC and the Kuwait Integrated Petroleum Industries Company (KIPIC), as part of Kuwait Petroleum Corporation’s (KPC) strategic restructuring of the refining and petrochemical sector.
The restructuring aims to improve operational efficiency, enhance transparency, and boost the global competitiveness of Kuwait’s energy sector.
Sources noted that KNPC, already responsible for supplying gas to manufacturers and distributing petroleum products domestically, was the natural recipient of the filling plants.
The agreement also includes the transfer of all employees at both facilities to KNPC, with their rights and entitlements protected through a comprehensive HR review.
During the 2024–2025 fiscal year, production increased to 17.9 million cylinders, marking a 3.15% rise compared to the previous year.
The distribution of household gas cylinders (12 kg) reached about 16.654 million units. Kuwait now operates 83 gas distribution centers, and liquefied gas consumption reached 204,010 metric tons—up from 195,538 tons in the previous year.
The sources added that all filling plant operations, including safety inspections and pressure tests, are fully automated. Plans are underway to build a third plant in the Kabd area to meet rising demand.
This development also marks a historic shift, as KNPC originally held the LPG distribution franchise from 1960. It built the first LPG filling plant in Shuwaikh in 1962.
The re-transfer of ownership reflects KPC’s strategy of integrating operations and human resources across subsidiaries to improve efficiency and cut costs.
Ultimately, this move contributes to Kuwait’s long-term vision of fostering sustainability, innovation, and leadership in the global energy market.
