QatarEnergy and Kuwait Petroleum Corporation (KPC) signed a new 15-year LNG supply agreement on August 26, reflecting Kuwait’s growing demand for low-carbon fuel for power generation. Under the terms of the arrangement, Qatar’s Q-Flex and Q-Max ships will transport liquefied natural gas (LNG) to Kuwait’s Al Zour refinery LNG import facility.
This is the second arrangement between the two corporations, following a 3 million metric tonnes per year deal in 2022. According to a KPC source, this increased supply is necessary due to Kuwait’s growing domestic demand for cleaner energy. Unlike prior contracts, Qatar’s Energy Minister Saad al-Kaabi travelled to Kuwait to sign this one, emphasising the importance of the pact.
KPC CEO Sheikh Nawaf al-Sabah emphasised the importance of the relationship with Qatar, noting that it will help Kuwait shift to cleaner energy and achieve net-zero emissions by 2050. To fulfil rising power demand and reduce emissions, Kuwait is transitioning from fuel oil to gas for power generation.
The government began importing LNG in 2009 and signed a 15-year contract with Shell in 2017 for LNG supply beginning in 2020. Kuwait has also built the Al Zour refinery, the Middle East’s largest power generation facility, with a capacity of 615,000 barrels per day.
