Kuwait Petroleum Corporation says that under the new deal, QatarEnergy will provide Kuwait with three million tonnes of liquefied natural gas (LNG) every year.
Kuwait City:
Kuwait’s state oil company announced on Monday that it has signed a 15-year agreement to buy natural gas from Qatar. The cost of the deal was not revealed.
Under this agreement, QatarEnergy will supply Kuwait with three million tonnes of liquefied natural gas (LNG) each year. The Kuwait Petroleum Corporation (KPC) shared this information in a statement.
KPC’s chief executive, Sheikh Nawaf Saud Al-Sabah, said that this is the second long-term deal with QatarEnergy in a short time, showing the strong partnership between the two companies. Kuwait had already signed a similar deal with QatarEnergy in 2020.
Sheikh Nawaf also mentioned that this new deal will help Kuwait use a cleaner energy source, which fits with Kuwait’s long-term plan to transition to cleaner energy.
Since mid-June, Kuwait has been facing high electricity demand during the hot summer months and has started rationing power in some residential and industrial areas.
The new LNG deliveries will start arriving at Kuwait’s Al-Zour refinery in 2025, according to KPC.
Qatar’s Energy Minister, Saad al-Kaabi, who is also the chief executive of QatarEnergy, said that this deal is an important part of supporting Kuwait’s sustainability goals, especially for generating electricity.
Qatar is one of the top producers of liquefied natural gas in the world, along with the United States, Australia, and Russia.
In February, Qatar announced plans to increase its LNG production from the North Field project to 142 million tonnes per year by 2030.
