Qatar to supply Kuwait with more LNG under new long-term deal

Qatar will supply LNG to Kuwait under a new long-term deal as the OPEC producer looks to import more natural gas to meet rising energy demand this summer.

QatarEnergy, the state-owned company of one of the world’s largest LNG exporters, on Monday signed an agreement to supply 3 million tonnes of LNG to Kuwait per year in a 15-year deal with Kuwait Petroleum Corporation (KPC).

Qatar, which has a similar LNG supply agreement with Kuwait from 2020, will begin deliveries from the new contract in 2025, KPC Chief Executive Sheikh Nawaf al-Sabah said in remarks reported by Reuters.

The LNG will be shipped to Kuwait’s Al Zour port and will come from both existing and future projects of QatarEnergy, which plans a massive expansion of its LNG export capacity this decade.

Part of the LNG in the new deal will be supplied to Kuwait from the planned expansion of Qatar’s North Field, while the other part will come from the current production of LNG trains, said Saad al-Kaabi, chief executive of QatarEnergy and Qatar’s minister of Qatar. State for energy affairs.

As Kuwait looks to boost its natural gas supply to meet demand for air conditioning in the Middle East’s scorching summers, another major hydrocarbon producer in the region, Qatar, wants to continue to be a major player in the global oil market. LNG export.

Qatar is backing its massive LNG expansion plans with new orders to charter dozens of new vessels as the small Gulf gas producer looks to consolidate its dominance of the global LNG export market.

Last year, the United States overtook Qatar as the world’s largest LNG exporter, but Qatar has a huge expansion program underway to increase its export capacity by 85 percent from current levels by 2030.

By Tsvetana Paraskova for Oilprice.com

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