Sheikh Khaled Al-Sabah, Managing Director of Global Marketing at Kuwait Petroleum Corporation, revealed that Kuwait has saved over $7 billion in approximately eight years by using liquefied natural gas (LNG) instead of diesel and fuel oil for power plants.
In a statement to the press, Al-Sabah emphasized that the recently signed long-term LNG supply contract with Qatar is not the first such agreement with QatarEnergy. Kuwait’s use of LNG as an alternative to diesel has resulted in significant financial savings.
He explained that the total amount of LNG Kuwait will import under the two agreements with Qatar could reach up to 5 million tons annually at peak times. There are also agreements in place to increase quantities during certain seasons in specific years.
Al-Sabah noted that the imported gas from Qatar will be utilized in the fuel stations of the Ministry of Electricity.
When asked whether the recent electricity crisis was a factor in signing the new contract, Al-Sabah responded, “No, the contract has been in the works for over six months, and negotiations have been ongoing. The gas supply is continuous, and this is unrelated to the recent crisis. However, it does reinforce the needs of the Ministry of Electricity and power stations.”
He added that Kuwait still uses fuel oil and diesel in some power stations, but the reliance on gas has increased significantly, with gas now accounting for 80% of the energy mix, compared to 20% from other fuel sources.