Kuwait strengthens its energy security with LNG deal with Qatar

Kuwait Petroleum Corporation and QatarEnergy sign a second contract for the delivery of 3 million tonnes of LNG per year, in response to Kuwait's growing energy demand.

Share:

Kuwait Petroleum Corporation (KPC) has signed a new agreement with QatarEnergy for the supply of liquefied natural gas (LNG) over a 15-year period. This commitment, the second in two years, provides for the annual delivery of 3 million tonnes of LNG to the Al Zour terminal.
The contract is designed to meet Kuwait’s soaring energy consumption, which requires reliable, long-term solutions.
The LNG volumes will be transported by the Q-Flex and Q-Max LNG carriers.
This initiative is part of a broader strategy to secure energy supplies, as Kuwait faces growing challenges linked to rising domestic demand.
The Qatari Minister of Energy, Saad al-Kaabi, is personally visiting Kuwait to formalize this agreement, underlining the importance of this bilateral cooperation.

LNG as a response to growing demand

The use of LNG in Kuwait is a response to the growing need to diversify energy sources and ensure a continuous supply of electricity.
Since 2009, the country has been importing LNG, supplementing its traditional resources to meet peaks in consumption, particularly during the summer months.
The Al Zour terminal, key to this infrastructure, is already receiving significant volumes under a previous contract signed in 2022.
By pursuing this import policy, Kuwait Petroleum Corporation is ensuring its ability to meet the country’s energy needs while limiting the risk of shortages.
The agreement with QatarEnergy, while not new, reinforces this strategy, positioning LNG as an essential pillar of Kuwait’s energy security.

QatarEnergy continues to expand in the LNG sector

QatarEnergy, a major player in the LNG market, continues to increase its production to meet global demand.
The expansion of its projects, both locally with the North Field and in the USA via Golden Pass, illustrates its ability to supply substantial volumes over the long term.
The new agreement with Kuwait is part of this expansion dynamic.
The instability of LNG prices on Asian markets accentuates the importance of long-term contracts, guaranteeing stable supply for customers like Kuwait.
By securing this agreement, Kuwait Petroleum Corporation is protecting itself against market fluctuations, ensuring the stability needed for national energy planning.

Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.