Key Takeaways
- QatarEnergy and Kuwait Petroleum Corporation sign a 15-year LNG sale and purchase agreement to strengthen trade relations between the two countries.
- The deal aims to increase LNG supply to Kuwait, starting in January 2025.
- Kuwait is working to resolve power outages, mainly due to growing needs for cooling and water desalination, and poor infrastructure maintenance.
Doha: QatarEnergy and Kuwait Petroleum Corporation (KPC) signed a 15-year Liquefied Natural Gas (LNG) sale and purchase agreement on Monday, the Qatari company said in a statement.
The deal, signed in Kuwait, will see QatarEnergy supply up to 3 million tonnes per annum of LNG to Kuwait, starting in January 2025.
This is QatarEnergy’s second long-term LNG agreement with KPC, following a similar 15-year deal signed in 2020. The new agreement aims to strengthen trade relations between the two countries, the statement added.
Kuwait is working to resolve power outages exacerbated by extreme summer temperatures and rising electricity demand. The Ministry of Electricity, Water, and Renewable Energy of Kuwait has recently reported blackouts due to unexpected fuel supply disruptions, which led to the shutdown of major generators at the Subiya and West Doha power plants.
Despite substantial oil revenues, Kuwait struggles with power outages, mainly due to growing needs for cooling and water desalination, and poor infrastructure maintenance.
