QatarEnergy inks 15-year contract to supply Kuwait with 3 mn tons of LNG annually

QatarEnergy + Kuwait Petroleum Corporation (KPC) ink 15-year LNG supply contract: State-owned QatarEnergy and the Kuwait Petroleum Corporation (KPC) has signed a 15-year sale and purchase agreement to supply up to 3 mn tons per annum (mtpa) of LNG to Kuwait, according to a statement. QatarEnergy will begin making LNG shipments via its Q-Flex and Q-Max LNG vessels to Kuwait’s Al Zour LNG Terminal in January 2025.

What they said: The new long-term partnership between KPC and QatarEnergy constitutes a “central element in supporting Kuwait’s sustainability goals particularly in the electricity generation sector,” QatarEnergy CEO and Qatari Energy Affairs Minister Saad Sherifa Al Kaabi.

Not a first: Kuwait inked an agreement with Qatar back in 2020 for the supply of 3 mn mtpa of LNG that is set to expire by 2035. The North Field agreement would mean that Qatari supplies to Kuwait will reach 6 mn mtpa at some point later this decade.

Expansion plans: Qatar is set to ink more LNG contracts with European and Asian buyers, as major expansion projects look to boost the country’s output by next to two-thirds to 126 mn tons over the decade, Al-Kaabi said in February. QatarEnergy is looking to partner with firms on expansion projects and has already signed contracts with global energy giants including Shell, TotalEnergies, Exxon Mobil, Eni and others.

A slew of supply contracts: QatarEnergy and US-based Excelerate Energy signed a long-term agreement in January to supply Bangladesh with LNG. The company also inked a 27-year LNG sales and purchase agreement with Chinese petrochemical company Sinopec in November. The firm also signed two long-term LNG sale and purchase agreements back in October with Shell for the supply of up to 3.5 mn tons per year of LNG to the Netherlands for 27 years.