Kuwait signs $3bn gas deal with BP

Kuwait needs more gas to deal with summer-time surges in power demand

Kuwait is expected to import 2.5 million tons of LNG per year.
Kuwait is expected to import 2.5 million tons of LNG per year.

International Oil Company BP has agreed a $3bn deal with Kuwait to supply LNG to the Gulf State, as it seeks to meet rising energy demands, according to Reuters.

Kuwait, a major OPEC oil producer, on Sunday agreed a $12 billion LNG supply deal over six years with Royal Dutch Shell and will also import gas from fellow Gulf state Qatar.

The BP deal, signed by state-run Kuwait Petroleum Corp (KPC), will help Kuwait run its power plants through the hottest time of the year.

"The amount contracted by the three companies that we signed with will be up to 2.5 million tonnes per year," said Nasser al-Mudaf, head of the KPC's international marketing division.

He was referring to the LNG deals with Shell, BP and state-run Qatargas and said this was an annual estimated amount over the next few years.

The LNG from the three companies will come in 32 shipments per year, each one comprising 80,000 tonnes, Mudhaf said. Shell will send 18 shipments, Qatargas will send eight and BP will send six, he added.

Kuwait began importing LNG, natural gas frozen to a liquid for transport on tankers, in 2009. Over the previous four years it has signed deals with Shell and Swiss-based trader Vitol to supply it during the peak power demand period from April to October.

 

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