Kuwait will meet its gas-fired power generation needs with additional LNG supplied by Qatar, following a new, long-term LNG sale and purchase agreement (SPA) signed by Qatargas with Shell
Under the SPA, 1 mta of LNG from Qatar Liquefied Gas Company Limited 4, a Shell-Qatar Petroleum (QP) joint venture, will be sold to Kuwait starting in 2020. The move follows a long-term SPA between QP and Kuwait Petroleum Corporation announced in January to supply up to 3 mta of LNG to Kuwait. The 15-year SPA will commence in 2022.
Commenting on the signing of the latest SPA, Qatar Minister of State Energy Affairs Saad Sherida Al-Kaabi said, “We are pleased to announce this new long-term agreement between Qatargas and Shell for the supply of LNG to the State of Kuwait, following the recent agreement signed between Qatar Petroleum and Kuwait Petroleum Corporation.”
Minister Al-Kaabi added, “This new SPA also further underlines Qatargas’ position as the market leader in LNG and demonstrates the company’s distinguished track-record of providing reliable LNG to the global marketplace and its continued ability to capture opportunities in a highly competitive environment."
“We believe this agreement provides a win-win solution for both companies and deepens the relationship with a valued partner and shareholder,” said Qatargas chief executive Khalid bin Khalifa Al Thani.
QP owns 70% of Qatar Liquefied Gas Company Limited 4 (Qatargas 4), and Shell controls the remaining 30% interest.
Qatar, the world’s second largest supplier of LNG to the global market, has already announced plans to expand its production capacity from 77 mta to 126 mta by 2027 through its North Field expansion project. In 2019, Qatar supplied 75M tonnes of LNG, second to Australia’s 77.5M tonnes.