QatarEnergy and KPC sign 15-year agreement for LNG supply to Kuwait

QatarEnergy has entered into a 15-year LNG Sale and Purchase Agreement (SPA) with Kuwait Petroleum Corporation (KPC) for the supply of up to 3 million tons per annum (MTPA) of LNG to Kuwait, the company said on Monday.

Pursuant the terms of the SPA, the contracted LNG volumes will be delivered ex-ship to Kuwait's Al-Zour LNG Terminal onboard QatarEnergy’s conventional, Q-Flex, and Q-Max LNG vessels, starting in January 2025, QatarEnergy said in a statement.

The agreement was signed during a ceremony in Kuwait City by His Excellency Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and the President and CEO of QatarEnergy, and Shaikh Nawaf Saud Al-Nasir Al-Sabah, Deputy Chairman and CEO of KPC.

“I am pleased to be in Kuwait, a country that is dear to our hearts, and to build 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,” Minister Al-Kaabi said after welcomed the signing of the agreement.

“It also reflects our commitment to support the future needs of all our clients, foremost of which is KPC. Our bilateral relations continue to grow and achieve the aspirations and interests of our peoples under the wise leadership of His Highness Sheikh Tamim bin Hamad Al Thani and His Highness Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, which underlines the deep brotherly ties and the long-term partnership between Kuwait and Qatar,” he added.

This new agreement is the second long term LNG SPA with KPC, and is considered pivotal in further boosting bilateral trade between Qatar and Kuwait.

In recent months, QatarEnergy has been steadily scaling up its global LNG delivery capacity – and in June it entered a deal with Qatar Gas Transport Company Limited (Nakilat) for the ownership and operation of nine LNG vessels, which is part of the state-owned petroleum firm’s fleet expansion strategy. As part of the long-term agreement, Nakilat will charter and operate nine QC-Max vessels, each with a capacity of 271,000 cubic metres. The vessels, which are part of QatarEnergy’s LNG expansion plans, will be built in China at Hudong-Zhonghua shipyards.