Gathering Centre 24 will be capable of handling 165,000 barrels per day of oil and 240 million cubic feet per day of gas.
It will take take three and a half years to build the plant, which will help Kuwait increase its crude output capacity to 4 million bpd, KOC managing director Farouk Al Zanki said.
The new plant is part of KOC's plan to boost oil production capacity to 4 million bpd by 2020.
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