Qatar to Supply Kuwait with 3 Million Tonnes of LNG Annually
In a groundbreaking move, Qatar has agreed to provide Kuwait with 3 million tonnes per annum of liquefied natural gas for the next 15 years. This deal marks the second agreement between the two countries since 2020, showcasing a strong partnership in the energy sector.
Signing of the Sales and Purchase Agreement
The chief executives of state-owned QatarEnergy and Kuwait Petroleum Corp. came together to sign the long-term sales and purchase agreement for LNG in Kuwait. Deliveries are set to commence in January 2025, according to KPC CEO Sheikh Nawaf Al-Sabah.
Meeting Rising Power Demand
As Kuwait faces a surge in power demand, especially during the scorching summer months, the country has been increasing its reliance on imported gas. This move aims to ensure a stable power supply, particularly during peak consumption periods.
Addressing Power Outage Concerns
Despite efforts to prevent power outages, Kuwait experienced a second round of scheduled cuts this summer due to a local gas supply shortfall. With temperatures frequently exceeding 50 degrees Celsius, reliable energy sources are crucial to the country’s infrastructure.
Impact of the Deal
The newly signed deal is expected to play a crucial role in electricity generation in Kuwait, as stated by Sheikh Nawaf. While the exact value of the agreement remains confidential, its significance in meeting the country’s energy needs cannot be understated.
Expanding Qatar’s LNG Output
Qatar’s ongoing North Field project expansion will solidify its position as a top LNG exporter globally. By increasing the North Field’s LNG output from 77 to 142 million tonnes per annum by 2030, Qatar is set to further strengthen its presence in the energy market.
Future Collaboration
The LNG supplied to Kuwait under the new agreement may come from both the North Field expansion project and Qatar’s existing output. This collaboration builds upon a previous 15-year deal signed in 2020, showcasing a long-term commitment to meeting Kuwait’s energy demands.