Kuwait, Qatar sign LNG supply deal.

Dubai: Kuwait secures a second liquefied natural gas (LNG) supply agreement with Qatar. According to the deal, Kuwait will import three million tons of LNG annually for 15 years, starting in 2025, following a similar 15-year agreement made in 2020. This move is part of Kuwait’s efforts to address power outages exacerbated by extreme summer temperatures and rising electricity demand.

Despite holding about 7 per cent of the world’s oil reserves and having one of the lowest crude oil production costs at around $10 (Dh36.7) per barrel, Kuwait’s electricity generation primarily relies on oil and gas. The country faces power outages due to increased demand for cooling and water desalination.

In 2022, Kuwait generated approximately 83.5 terawatt hours of electricity, up from 57.5 terawatt hours in 2011.It operates nine utility-scale power plants with a combined capacity of nearly 18,000 megawatts. Recent blackouts were largely attributed to unexpected fuel supply disruptions that caused shutdowns at the Subiya and West Doha power plants, according to a statement by the ministry of electricity and water.