Qatar has reached a deal to provide Kuwait with 3 million tonnes of liquefied natural gas (LNG) annually for 15 years. This is the second agreement of its like since 2020, as Kuwait imports the fuel to help meet the growing demand for power generation.
Kuwait Petroleum Corporation and state-owned QatarEnergy’s leading executives signed the long-term LNG sales and purchase deal in Kuwait. In January 2025, deliveries will begin, according to KPC CEO Sheikh Nawaf Al-Sabah.
Speaking about the agreement, Reuters said in August 2024 that Qatar Energy and KPC were in negotiations.
Kuwait, a significant oil producer and member of OPEC, has increased its reliance on imported gas to cover its power needs, particularly during the summer when air conditioning systems use more energy. KPC’s objective includes increasing its gas output in addition to aiming for larger oil production capability.
Due to a break in the local gas supply, Kuwait saw its second round of planned power outages this summer, even though officials had stated there would be no more after the first round in June 2024. Summertime highs can surpass fifty degrees Celsius, or twelve degrees Fahrenheit.
According to Sheikh Nawaf, the agreement will have “a crucial role in electricity generation in Kuwait.”
He said the agreement was secret and failed to share its amount.
This year, Qatar announced plans to expand its North Field project even further, solidifying its position as one of the leading LNG suppliers globally. By 2030, the project will increase the North Field’s LNG output from 77 mtpa to 142 mtpa.
According to QatarEnergy CEO and state minister for energy, Saad Al-Kaabi, some of the LNG from the new supply agreement for Kuwait may come from Qatar’s current output and some from the North Field expansion project. The port of Al Zour in Kuwait will receive it.
In 2020, Kuwait and Qatar agreed to deliver 3 million tons of LNG annually for 15 years starting in 2022, aligning with the current agreement.