State-run Qatar Petroleum (QP) said it had signed a 15-year agreement to supply Kuwait with up to 3 million tons of liquefied natural gas (LNG) per year.
Deliveries to Kuwait’s al-Zour port will begin in 2022 to help meet Kuwait’s growing energy needs, particularly in the power generation sector, QP said in a joint statement with Kuwait Petroleum Corp (KPC).
Qatar, the world’s top supplier of LNG, plans to boost its production of LNG to 126 million tons a year (mtpa) by 2027.
The deal would help Kuwait to meet its requirement for cleaner sources of energy and would contribute to reducing emissions and improving local air quality, Kuwait’s oil minister Khaled al-Fadhel said in the statement.
“Whilst KPC is working towards increasing local natural gas production, there remains a pressing need to secure imports of natural gas supplies,” Fadhel said.
Kuwait has been boosting its reliance on imported gas to meet power demand, especially in summer when consumption by air conditioning systems rises sharply, but it is also focusing on ramping up gas production as part of its 2040 growth strategy. (Reporting by Ahmed Hagagy Additional reporting by Rania El Gamal Editing by Jason Neely and David Holmes)