In a significant move that underscores the strength of the energy sector in the region, Kuwait Petroleum Corporation (KPC) and QatarEnergy announced their second long-term sales and purchase agreement for the supply of up to 3 million tons per year of liquefied natural gas (LNG) to Kuwait, which was signed on Monday. Building on the foundation laid by their initial agreement signed in 2020, this new contract solidifies the ongoing strategic cooperation between the two companies and further strengthens the future of energy cooperation between the two nations.

The agreement aims to leverage the strengths and expertise of both companies and addresses the growing global demand for cleaner energy solutions. Through this deal, KPC seeks to transition towards cleaner energy sources through LNG use, which will help reduce emissions and improve domestic air quality. In addition, it will secure a stable supply of energy resources while meeting Kuwait’s growing energy demand in the power sector.

KPC CEO Sheikh Nawaf Saud Al-Sabah stated: “This second long-term agreement with QatarEnergy within a short period of time confirms our longstanding collaboration with our Qatari brethren to provide a cleaner source of energy plays in line with our Energy Transition 2050 strategy.”

KPC CEO Sheikh Nawaf Al-Sabah and Kaabi shake hands during a signing ceremony at KPC headquarters on Aug 26, 2024. – KUNA

Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy Saad Sherida Al-Kaabi said: “This is a new long-term partnership between KPC and QatarEnergy that constitutes a central element in supporting Kuwait’s sustainability goals, particularly in the electricity generation sector. It also reflects our commitment to support the future needs of all our clients, foremost of which is KPC.”

The agreement was signed at KPC’s Head Office in Kuwait by Sheikh Nawaf and Kaabi in a ceremony attended by senior executives from both companies. The agreement is set to be effective for 15 years, with deliveries to Al-Zour Refinery’s LNG import terminal beginning in 2025. Under this agreement, up to three million metric tons of LNG will be supplied. This initiative aligns with KPC’s 2040 strategy, emphasizing sustainability by adopting LNG as a cleaner energy source. The use of LNG is expected to significantly reduce emissions and enhance domestic air quality, contributing to a more sustainable energy future for the region.

KUNA