Royal Dutch Shell and BP have entered a supply agreement with Kuwait to deliver around 2.5 million tonnes of Liquefied Natural Gas (LNG) over the next five to six years; said an official from Kuwait Petroleum Corporation (KPC).
Kuwait’s natural gas demand exceeds its production capacity which forcing to the country to become a net importer of natural gas in 2009. Rising electricity demand and persistent power shortages during the peak power demand periods (April to October) saw the need to secure adequate natural gas supply. The country depends on fossil fuels, oil and natural gas for power generation.
The deputy director of marketing at KPC Jamal Al-Loughani, told the Kuwaiti Al-Seyassah newspaper that Shell and BP have been contracted to supply the OPEC member country over the next 5-6 summers.
Swelling air conditioning demand in the hot Middle Eastern summer is to blame for the rise in electricity demand each year.
He said Kuwait will sign another contract to buy LNG from a third company later this week, but did not elaborate.
Kuwait Petroleum Corporation manages the country’s gas sector.
