MEED magazine quoted informed sources as saying that the ongoing shutdowns in China have a negative impact on the progress of oil and gas projects in Kuwait. The sources indicated that the import of shipments of steel plates and tubes that were due to arrive from Shanghai Port to Kuwait for use in oil sector projects has been cancelled, according to a local Arabic daily.

One of the sources stated, “Contracts are currently in talks with regard to what is happening with the shipments from Shanghai, and it is hoped that the issues will be dealt with without the need to resort to a legal solution.” The corona virus outbreak in China has brought entire cities to a standstill and caused major disruption to manufacturing and shipping hubs across the country.

About 373 million people — a quarter of China’s population — have been subject to virus-related closures in recent weeks due to the so-called zero infection policy in the country, and there are also concerns that the new closures will cause further disruption to global supply chains.

The problems with purchasing from China come as Kuwaiti contractors struggle to find alternatives to Russian suppliers – the situation that has worsened to the outbreak of a conflict between Russia and Ukraine.

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