Oil & Gas Kuwait signs fresh LNG supply deal with Qatar By Eva Levesque August 26, 2024, 2:49 PM Qatar Energy An LNG carrier operated by Qatar Energy. Kuwait imported 6.3m tonnes of LNG in 2023 3m tonnes per year for 15 years Gas use outruns production 99% of energy from oil and gas Kuwait has arranged a second liquefied natural gas supply agreement with Qatar. The deal, signed on Monday, consists of importing three million tonnes of LNG a year for 15 years beginning in 2025. A similar 15-year deal was signed in 2020. Kuwait is striving to ease power outages, with extreme summer temperatures putting pressure on its domestic electricity demands. NewsletterGet the Best of AGBI delivered straight to your inbox every week Kuwait holds about 7 percent of global oil reserves with one of the lowest costs of crude oil production, around $10 per barrel. The country generates its electricity mainly from oil and gas and ranks as the world’s second-largest CO2 emitter per capita behind Qatar. Despite the windfall from oil, it is suffering from power outages amid growing cooling and water desalination demand and a lack of maintenance of infrastructure, according to experts. The total amount of electricity generated in Kuwait in 2022 was about 83.5 terawatt hours, compared to 57.5 terawatt hours in 2011, according to Statista. Kuwait turns to budget deficit as oil income drops Opec cuts forecast for oil demand growth Large deals drive Qatar and Kuwait real estate in Q2 The country has nine utility-scale power plants in operation, with a total capacity of almost 18,000 megawatts. The Ministry of Electricity and Water reported that recent power blackouts were mainly due to unexpected fuel supply interruptions leading to the shutdown of major generators at the Subiya and West Doha power plants. Opec’s fifth-largest oil producer has increased its gas consumption beyond its domestic production, as it is phasing out burning oil to produce electricity to reduce its carbon footprint. It imported 6.3 million tonnes of LNG in 2023, including spot cargoes, according to Bloomberg. The Kuwaiti government is also discussing green energy projects, but the country is lagging behind its Gulf neighbours in terms of energy transition. Green energy accounts for only around 1 percent of domestic electricity production, the remaining is generated from oil and gas.
