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QatarEnergy’s CEO, Saad Sherida al-Kaabi, and KPC’s CEO, Sheikh Nawaf al-Sabah, signed the SPA during a ceremony in Kuwait on Monday.
The new SPA includes the delivery of up to three million tons per annum of LNG to KPC to fuel Kuwait’s power plants.
Pursuant the terms of the SPA, the contracted LNG volumes will be delivered ex-ship to Kuwait’s Al-Zour LNG terminal onboard QatarEnergy’s conventional, Q-Flex, and Q-Max LNG vessels, starting in January 2025, according to a statement by QatarEnergy.
This deal follows a long-term deal the two firms signed back in 2021.
Under that 15-year SPA, QatarEnergy also agreed to supply 3 million tons per year of LNG to Kuwait’s Al-Zour receiving terminal.
In 2021, LNG producer QatarEnegy LNG, previously knows as Qatargas, delivered the first-ever cargo of LNG to help commission the Al-Zour facility.
Operated by KPC’s unit KIPIC, Al-Zour terminal is one of the largest LNG import terminals in the world with an import capacity of 22 mtpa.
Huge LNG expansion
QatarEnergy is currently working on the giant North Field LNG expansion program that includes the North Field South and North Field West projects, which together will raise Qatar’s LNG production capacity from the current 77 mtpa to 142 mtpa in 2030.
The first two projects include six mega trains, each with a production capacity of 8 mtpa of LNG, four of which are part of the North Field East expansion project, and two are part of the North Field South expansion project.
QatarEnergy officially started construction on its North Field expansion project in the giant Ras Laffan complex in October last year.
QatarEnergy LNG currently operates 14 LNG production trains with a capacity of about 77 mtpa in Ras Laffan.
QatarEnergy’s partners in the expansion project are Shell, ConocoPhillips, ExxonMobil, TotalEnergies, Eni, Sinopec, and CNPC.
Technip and Chiyoda won the EPC award for the North Field East project, while QatarEnergy awarded the contract for the North Field South project to a joint venture of Technip Energies and Consolidated Contractors Company.
Besides this deal with KPC, QatarEnergy signed this year LNG supply deals with Taiwan’s CPC, India’s Petronet LNG, and US FSRU player Excelerate Energy.
Prior to these deals, QatarEnergy signed huge contracts in 2023.
These large deals include 27-year SPAs with Sinopec, Eni, Shell, and TotalEnergies.
(Updated with a statement by QatarEnergy.)