KNPC merger lifts LPG bottling output & sales

The recent merger of two liquefied petroleum gas (LPG) bottling plants under the Kuwait National Petroleum Company (KNPC) has significantly improved the company's logistical and commercial performance. Cooking gas sales across Kuwait surpassed 17 million cylinders by the end of the last fiscal year, marking a substantial increase.

“

Transferring the liquefied gas plants to KNPC yielded a comprehensive package of major strategic, operational and financial benefits, such as higher production efficiency, reduced expenses, and guaranteed sustainable supply for the local market.

The Shuaiba plant demonstrated impressive growth, producing nearly 8 million cylinders (12 kg size), a 3.57% rise from the previous year. Its domestic sales also climbed by 3.32%, reaching over 7.9 million cylinders. Concurrently, the Umm Al-Aish plant maintained its operational excellence, producing over 9.2 million cylinders, a 2.2% increase, with sales growing by the same margin to over 9.1 million cylinders.

KNPC now utilizes an extensive distribution network of 83 strategically placed centers to meet the growing demand. Officials confirm that the integration of the LPG plants under KNPC has yielded major strategic, operational, and financial advantages. These include enhanced production efficiency, reduced expenses, and a guaranteed sustainable supply for the local market.

“

Unifying management and decision-making eliminated procedural duplication and bureaucracy, thereby, streamlining the paperwork.

The unification of management has eliminated procedural duplication and bureaucracy, streamlining operations. The merger also achieved real integration in supply chains by directly linking filling and distribution to KNPC's main LPG sources. This ensures a safe, seamless, and continuous product flow.

“

This feature ensures a safe, seamless and continuous flow of products.

Furthermore, the merger provides geographical flexibility, allowing for the reallocation of production and instant exchange of supply quotas between the southern Shuaiba plant and the northern Umm Al-Aish plant based on real-time demand. This consolidation has notably reduced expenses and financial waste by cutting costs and consolidating redundant administrative, logistical, and technical functions. It also promotes optimal asset utilization through shared engineering expertise, coordinated maintenance, and joint procurement of spare parts and equipment via competitive tenders.

“

The merger plan remarkably reduced expenses and curbed financial waste by reducing costs and consolidating redundant administrative, logistical and technical functions.