Qatar Petroleum Signs 15-year Contract With Kuwait

State-owned oil and gas company Qatar Petroleum (QP) said it had signed an agreement with Kuwait Petroleum Corporation to supply 3 million tonnes of liquefied natural gas annually for 15 years.

The agreement was signed on Sunday in Kuwait by Qatar Petroleum CEO and Qatari Energy Minister Saad Sherida Al-Kaabi and Kuwaiti Oil Minister Khaled Ali Al-Fadhel.

“Under the 15-year agreement, LNG deliveries to Kuwait’s new world-class LNG receiving terminal at Al-Zour Port will commence in 2022 to support meeting Kuwait’s growing energy needs and demand, particularly in the power generation sector,” the Qatari company said.

According to Al-Fadhel, Kuwait needs cleaner energy sources, such as natural gas, and despite the country’s increasing domestic gas production, there is still an urgent need for imports. 

A member of the Qatar Petroleum Board of Directors, Othman Al-Yafei, said this is one of the largest LNG agreements in the Gulf and discussions had started at the end of 2018.

“The agreement will open wider opportunities for cooperation between Qatar and Kuwait, and enhance bilateral relations and bonds of sustainable joint cooperation between them in a manner that best serves the interests of the Qatari and Kuwaiti people,” he said.

Al-Kaabi said the agreement will “contribute to enhancing Qatar’s distinguished relations with Kuwait and at the same time reflects the strength of our partnership and commitment to supporting Kuwait’s growth.”

“The agreement extends Qatar’s long-standing LNG supply relationship with Kuwait well into the 2030s and highlights our commitment to meeting Kuwait’s LNG requirements,” he added.

Kuwait’s Oil Minister, Al-Fadel said: “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.”