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Qatar Provides Kuwait with Gas for 15 Years to Meet Its Growing Energy Demand

August 21, 2024

Qatar Energy is in talks with the Kuwait Petroleum Corporation (KPC) to provide it with new long-term supplies of liquefied natural gas (LNG) to help meet the growing demand for power generation in Kuwait.

The agreement includes the supply of three million tons per year of seaborne fuel to Kuwait over 15 years from the North Field project, which is expected to start operation in 2026.

Kuwait is a member of the Organization of Petroleum Exporting Countries (OPEC) and a major oil producer. It is working to strengthen its dependence on imported gas to meet energy demand, especially in summer with a sharp rise in energy consumption from air conditioning systems, but it is also focusing on increasing gas production as part of its 2040 growth strategy.

Kuwait this week faced a second wave of scheduled power outages due to a disruption in gas supplies, although officials have indicated that there will be no further outages after the first wave in June.

Summer temperatures usually exceed the level of 50 degrees Celsius, which increases the use of air conditioning and energy demand.

The agreement is expected to be announced in the fourth quarter of this year, as work is still underway on the arrangements.

Qatar, one of the world’s largest LNG exporters, plans to expand LNG production by 85% from the North Field, which currently produces 77 million tons per year, to 142 million tons per year by 2030 from 126 million tons per year as previously expected.