Kuwait Petroleum Corporation (KPC) and Qatar Energy are discussing a long-term liquefied natural gas (LNG) supply deal, reported Reuters, citing sources.   

The deal is aimed at addressing Kuwait's increasing power generation demands.  

The proposed agreement, spanning 15 years, would involve Qatar providing Kuwait with three million tonnes per annum (mtpa) of LNG, the sources told the publication. 

Qatar Energy will source the LNG for the contract from its North Field expansion project, set to start operations in 2026. 

Kuwait, an Organization of the Petroleum Exporting Countries member and a key oil producer, is increasingly turning to imported gas to satisfy its energy requirements, particularly during the summer when air conditioning use spikes due to high temperatures.  

This reliance comes amidst efforts to enhance domestic gas production as part of Kuwait's 2040 growth strategy.  

Recently, the country experienced power outages linked to gas supply issues, highlighting the urgency of securing additional energy sources. 

The expected announcement of the deal is in the fourth quarter of this year, the sources added.   

While the details of the deal are still under 'arrangements', according to a source at KPC, the agreement would double the Qatari LNG supplies to Kuwait to 6mtpa later this decade, complementing an existing 15-year contract set to expire in 2035. 

Qatar aims to expand its North Field output by 85%, aiming to increase its LNG production capacity from the current 77mtpa to 142mtpa by 2030.  

The North Field is said to be the world's largest single non-associated gas reservoir, covering over 6,000km² and was discovered in 1971. 

In preparation for this expansion, QatarEnergy has partnered with global energy corporations, including China National Petroleum Corporation, ConocoPhillips, Eni, ExxonMobil, Shell, Sinopec, and TotalEnergies.