Qatar signs another LNG supply contract with Kuwait for 15 years
Qatar has agreed to supply Kuwait for 15 years with 3 million tonnes per annum of liquefied gas (LNG). This is the second LNG deal signed since 2020, as Kuwait imports this fuel to meet the rising demand for electricity generation.
Kuwait Petroleum Corporation and QatarEnergy, a state-owned company, signed a long-term agreement to sell and buy LNG. KPC CEO Sheikh Nawaf Al-Sabah announced that deliveries will begin in January 2025.
Last week, it was reported that QatarEnergy & KPC were in negotiations for a deal.
Kuwait, a member of OPEC and a major producer of oil, is increasing its reliance upon imported gas in order to meet the power demand. This is especially true during summer, when air conditioning systems are used more. KPC also wants to increase its own gas production as part of an overall strategy that aims for higher oil production.
Kuwait experienced a second round scheduled power outages last week due to a failure in the local gas supply. This was despite official assurances that there would not be any more after the June round. Summer temperatures regularly soar above 50 degrees Celsius (122 degrees Fahrenheit).
Sheikh Nawaf stated that the deal would play a "crucial role" in Kuwait's electricity generation.
He refused to reveal the value of the deal, saying that it was confidential.
Qatar announced this year a new expansion of its North Field Project that will make it one of the top LNG exporters in the world. The project will increase the North Field LNG production to 142 mtpa, from 77mtpa, by 2030.
QatarEnergy CEO Saad Al-Kaabi is also Qatar's State Minister for Energy. The LNG will be delivered Kuwait's Al Zour Port.
Kuwait and Qatar signed a 15-year agreement in 2020 for the supply 3 mtpa LNG starting 2022. This deal will overlap the new one. (Reporting and writing by Ahmed Hagagy, Nayera Abdallah and Yousef SABA; editing by Louise Heavens & Mark Potter).
(source: Reuters)
