Qatar and Kuwait Make 15-Year LNG Deal
Qatar Petroleum (QP) will supply Kuwait with up to 3 million tons per annum (mtpa) of liquefied natural gas (LNG) under a long-term sales and purchase agreement (SPA) that it signed with Kuwait Petroleum Corp. (KPC), QP reported Sunday.
Under the 15-year SPA, Kuwait will receive shipments of LNG at its new Al-Zour Port receiving terminal beginning in 2022, QP noted in a written statement. The Qatar state firm added the LNG will help to sustain Kuwait’s growing energy demand, particularly in power generation.
“This agreement extends Qatar’s longstanding LNG supply relationship with Kuwait well into the 2030s and highlights our commitment to meeting Kuwait’s LNG requirements,” commented Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and QP’s president and CEO. “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.”
Al-Kaabi and Khaled A. Al-Fadhel – KPC’s board chairman and Kuwait’s oil minister as well as electricity and water minister – signed the SPA during a ceremony in Kuwait City, QP stated.
“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, noted Al-Fadhel. “Whilst KPC is working towards increasing local natural gas production, there remains a pressing need to secure imports of natural gas supplies.”
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