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RPT-Kuwait in talks with Qatar for brand-new 15-year LNG supply offer from North Field

Qatar Energy remains in talks with Kuwait Petroleum Corporation (KPC) for a new longterm supply of melted natural gas (LNG) to assist meet rising need for power generation in the Gulf Arab state, 5 trading and industry sources informed Reuters.

The offer would see Qatar supplying Kuwait with 3 million metric heaps per annum (mtpa) of the seaborne fuel over 15 years from its North Field task, which is anticipated to start operation in 2026, four of the sources said.

Kuwait, an OPEC member and a significant oil manufacturer, has been enhancing its reliance on imported gas to fulfill power demand, especially in summertime when consumption by a/c systems increases sharply, but it is likewise focusing on ramping up gas production as part of its 2040 development method.

This week, Kuwait faced a 2nd round of scheduled power outages this summer season, due to a defect in the gas supply, in spite of authorities showing there would disappear cuts after the first round in June. Summertime temperatures frequently overlook 50 degrees Celsius, raising usage of air conditioning and power need.

The deal is expected to be announced in the 4th quarter of this year, one of the sources stated.

A 5th source at KPC said arrangements were still being made.

Qatar Energy and KPC were did not instantly respond to Reuters ask for comment.

Qatar, one of the world's top LNG exporters, prepares an 85%. growth in LNG output from its North Field's present 77. million metric loads each year (mtpa) to 142 mtpa by 2030, from. formerly expected 126 mtpa.

Authorities have urged residents to cut down on electricity. usage during peak usage times in between 11am and 5pm regional. time.

In 2020, Kuwait signed a 15-year agreement with Qatar for. the supply of 3 mtpa of LNG and would expire by 2035. The new. deal from North Field expansion project would mean Qatari. products to Kuwait will amount to 6 million mtpa at some time. later on this years.

(source: Reuters)