Qatar state-owned QatarEnergy has signed a liquified natural gas (LNG) supply agreement with Kuwait Petroleum Corporation (KPC).
Under the sale and purchase agreement (SPA), QatarEnergy will provide the State of Kuwait with up to 3 million tonnes per annum (mtpa) of LNG for a duration of 15 years.
Starting in January 2025, QatarEnergy will deliver the contracted LNG volumes ex-ship to Kuwait's Al-Zour LNG Terminal using its conventional, Q-Flex, and Q-Max LNG vessels.
Kuwait, a member of the Organization of the Petroleum Exporting Countries and a major oil producer, is increasingly relying on imported gas to meet its energy needs, especially during the summer months when the demand for air conditioning rises due to high temperatures.
The deal comes as Kuwait works to boost its domestic gas production as part of its 2040 growth strategy.
It is the second long-term LNG SPA with KPC, with the first 15-year contract set to expire in 2035.
QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “I am pleased to be in Kuwait, a country that is dear to our hearts, and to build a new long-term partnership between KPC and QatarEnergy, that constitutes a central element in supporting Kuwait’s sustainability goals particularly in the electricity generation sector. It also reflects our commitment to support the future needs of all our clients, foremost of which is KPC.”
According to Reuters, the LNG to be supplied under the new deal with Kuwait may come partly from the North Field expansion project and partly from Qatar's current production.
By 2030, Qatar aims to boost its North Field LNG output by 85% to 142mtpa from 77mtpa.
The North Field, said to be largest single non-associated gas reservoir, spans over 6,000 km² and was discovered in 1971.
To support this expansion, QatarEnergy has teamed up with major global energy firms such as CNPC, ConocoPhillips, Eni, ExxonMobil, Shell, Sinopec, and TotalEnergies.
