Qatar Energy could sign 15-year LNG supply deal with Kuwait
Supply would be part of Kuwait’s efforts to meet rising power demand after two rounds of scheduled outages during the summer.
Qatar Energy is currently discussing with Kuwait Petroleum Corporation (KPC) the possibility of a long-term supply of liquefied natural gas (LNG).
According to a report by Reuters, the state-owned company is looking for help to meet the rising demand for energy generation. The partnership could lead to the supply of approximately 3 million metric tons per annum of LNG over 15 years.
The deal is expected to be announced during this year’s fourth quarter, with the alternative fuel coming from Qatar’s North Field project, which is expected to be operational by 2026.
Qatar is one of the world's top LNG exporters, and its North Field project is expected to undergo a 85% expansion from its current output of 77 million metric tons per year to 142 by 2030.
Recently, Kuwait underwent a second round of scheduled power outages during the summer caused by a gas supply malfunction. This episode follows a round of outages in June, in which officials confirmed that there wouldn’t be any more cuts after it.
The country seeks to ramp up gas production and continue developing gas imports as part of its 2040 growth strategy. The plan aims to meet rising power demand, especially during the summer with temperatures above 50 degrees and energy consumption rising due to air conditioning systems.
