Saturday, Sep 25, 2021
International Finance
Oil & Gas

Kuwait inks 15-year pact with Qatar to import gas from 2022

Kuwait Petroleum Corporation (KPC) Qatar Petroleum
Kuwait’s dire need of gas to be fulfilled from 2022

Kuwait Petroleum Corporation (KPC) has forged a 15-year deal with Qatar Petroleum to import 3 million tonnes of Liquefied Natural Gas (LNG) annually.

Although Kuwait has an abundant resource of oil, it lacks adequate supply of gas. In order to tackle this scarcity, Kuwait is currently importing 2.5 million tonnes of LNG annually from BP, Shell and Qatar Petroleum.

According to the terms of the 15-year-pact, Kuwait’s import of gas from Qatar is slated to begin from 2022. Through this transaction, the Persian Gulf country seeks to address its burgeoning needs of gas for power generation.

At an exclusive event held in Kuwait City, the collaboration was signed by Dr Khaled Al-Fadhel, the Minister of Oil and the Minister of Electricity and Water, the Chairman of the Board of Kuwait Petroleum Corporation (KPC) and Saad Sherida Al-Kaabi – the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum.

Set up in 1980, the KPC was formed as an entity under which all activities of the Kuwaiti oil domain are completely kept under the government’s control.

Qatar aims to enhance its gas production volume to 126 million mt/p by 2027, a hike of 64 percent from the present 77 million mt/p annually.

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