Qatargas-2 and KPC sign LNG supply deal

07/04/2016 07:40 AST

Qatar Liquefied Gas Company Limited-2 (Qatargas 2) and Kuwait Petroleum Corporation (KPC) have executed an agreement to supply half a million tonnes of Liquefied Natural Gas (LNG) to Kuwait over the next four years.

The LNG will be sourced from Qatargas 2, a joint venture between Qatar Petroleum, ExxonMobil and Total which started production in 2009, and will be delivered onboard Q-Flex LNG Vessels, chartered by Qatargas, to KPC’s Mina Al Ahmadi LNG receiving terminal in Kuwait.

Saad Sherida Al Kaabi, Qatargas Chairman of the Board, said: “The agreement consolidates the position of Qatargas as the LNG partner in the GCC region and the Middle East, and enhances its established global position.”

Al Kaabi added that “the conclusion of this agreement cements the positive and mutually beneficial trade relations between the Qatari and Kuwaiti energy sectors, and enhances the position of Qatar as a safe and reliable supplier of clean energy to all corners of the world.”

Commenting on the agreement, Qatargas Chief Executive Officer Khalid bin Khalifa Al Thani said: “The signing of this agreement with KPC is another significant step in demonstrating Qatargas’ capability to reliably and efficiently lead the supply of LNG to the Middle Eastern emerging energy markets. This deal demonstrates the eagerness to strengthen and expand our relationship, and Qatargas’ readiness to meet KPC’s future demand for LNG.”

Kuwait’s LNG delivery season typically would start from March and extend to November of each year, to meet Kuwait’s growing demand for power during peak summer months. Qatargas has been supplying Kuwait with the majority of its LNG requirements for the past five years through both direct sales to KPC and through third parties who have made deals with both Qatargas and KPC. As for other Middle Eastern markets, Qatargas has been supplying LNG to Dubai since 2008 and has delivered a commissioning cargo to Jordan in May 2015.

Qatargas which pioneered the Liquefied Natural Gas (LNG) industry in Qatar is currently the largest producer of LNG in the world with an annual production capacity of 42 million tonnes per annum (MTPA) from its world-class facilities in Ras Laffan Industrial City, Qatar.

Since first production in 1996, Qatargas has successfully delivered cargos to 28 countries and is committed to meeting the world’s demand for safe, reliable and clean energy.

Through its operational excellence Qatargas is adding value to its production chain creating new markets and contributing to the local community. In addition to the LNG facilities, Qatargas operates the Jetty Boil-Off Gas facility, the Laffan Refinery, one of the largest condensate refineries in the world, and the Ras Laffan Terminal on behalf of all participants.

The Peninsula