Under a 15-year sales and purchase (SPA) agreement between Qatar Petroleum and Kuwait Petroleum Corporation (KPC), Qatar will supply 3 mta of LNG to Kuwait from 2022
The long-term SPA was signed by Kuwaiti Minister of Oil and KPC chairman Dr Khaled A Al-Fadhel and Qatar Minister of State for Energy Affairs and QP president and chief executive Saad Sherida Al-Kaabi.
LNG will be offloaded at Kuwait’s new LNG receiving terminal at Al-Zour Port, which is expected to be commissioned in 2020 with a regas terminal, eight 225,000-m3 storage tanks and two marine jetties.
The SPA underpins Kuwait’s growing energy needs and demand, particularly in the power generation sector.
Minister Al-Kaabi said, “This agreement extends Qatar’s long-standing LNG supply relationship with Kuwait well into the 2030’s and highlights our commitment to meeting Kuwait’s LNG requirements. We are confident that the exceptional reliability of our LNG supplies will provide KPC with the required flexibility and supply security to fuel the State of Kuwait’s impressive growth.”
Dr Al-Fadhel said, “The state of Kuwait is embarking on an ambitious path of economic growth, which requires cleaner energy sources such as natural gas that will contribute to reducing emissions and improving local air quality. While KPC is working towards increasing local natural gas production, there remains a pressing need to secure imports of natural gas supplies.”
At the Doha Forum in December, Minister Al-Kaabi said, “The current energy transition is mostly driven by the need for cleaner and more economic and sustainable alternatives. Natural gas is key in this transition because of its qualities as the cleanest of fossil fuels.”
He added, “Many countries are moving away from coal and building infrastructure for the use of gas. When we consider the efforts to combat climate change and the ongoing concerns over CO2 and other gas emissions, it is clear that gas is the future.”
With the global demand for energy and natural gas rising, Qatar plans to raise the country’s LNG production capacity to 126 mta by 2027.