Qatar Energy, Kuwait Petroleum Corporation discuss long-term LNG supply deal

(MENAFN) Qatar Energy is negotiating with Kuwait Petroleum Corp to secure a new long-term liquefied natural gas (LNG) supply agreement aimed at supporting Kuwait's increasing energy demands, particularly for power generation. According to sources, the proposed deal would deliver 3 million tonnes of LNG annually over a 15-year period, starting from 2026, sourced from Qatar's North Field project. This project is poised to significantly boost Qatar's LNG production, with plans to expand output by 85 percent to 142 million tonnes per year by 2030.

Kuwait, a key oil producer and member of OPEC, is strategically shifting towards greater reliance on imported natural gas to meet its energy needs, especially during peak summer months when temperatures soar above 50 degrees Celsius, leading to high air conditioning use and increased energy consumption. Despite recent power cuts due to gas supply issues, Kuwait is also focusing on increasing its own gas production as part of its 2040 growth strategy.

The finalization of this agreement is anticipated in the fourth quarter of this year. If successful, it will double Qatar's LNG exports to Kuwait, augmenting the existing 15-year contract signed in 2020, which also provided for 3 million tonnes per year.

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