A kinetic equation which combines the quasiparticle drift of Landau's
equation with a dissipation governed by a nonlocal and noninstant scattering
integral in the spirit of Snider's equation for gases is derived. Consequent
balance equations for the density, momentum and energy include quasiparticle
contributions and the second order quantum virial corrections. The medium
effects on binary collisions are shown to mediate the latent heat, i.e., an
energy conversion between correlation and thermal energy. An implementation to
heavy ion collisions is discussed