With the supply of gas from Qatar to Kuwait, there will be no more concerns about our limited gas availability. It is time to think big and strategically. Let us focus on transitioning away from using our limited d o m e s t i c gas for electricity generation and relying more on imported gas as our main energy source.

In the future, we can consider using our domestic supply, but only once we ensure its adequate availability. Negotiations between Kuwait and Qatar are ongoing, with an agreement expected to be finalized by the end of the year. A supply agreement has been signed to purchase approximately three million tons of lean gas from Qatar over the next 15 years, starting in 2026. The framework is set, and the gas is available and ready. This lean gas will be used exclusively for electricity generation in Kuwait.

The gas will be coming from Qatar’s North Gas project, which is expected to be completed and ready to produce by the end of 2026. It will be transported via sea to the Al- Zour terminal, which has been specifically built for gas import. The terminal is equipped to handle various cargoes of gas from multiple sources. Kuwait Petroleum Corporation (KPC) and the Ministry of Electricity and Water are still finalizing the exact figures for gas supply needs and requirements.

Given the unpredictable nature of demand and the potential for annual increases, the facility will also accommodate additional volumes of gas for emergencies. Kuwait will continue to import lean gas, as opposed to rich gas, which is used for petrochemical purposes and is more expensive. Since Kuwait’s immediate needs do not include rich gas, we can focus on using naphtha for any future petrochemical ventures.

It is unfortunate that we are not fully utilizing our naphtha and are instead exporting all our refinery products from our three refineries, which are being used to generate products of value almost 300 percent, such as manufacturing medical products used in hospitals and other advanced sectors. The gas imports from Qatar represent an added value for both countries and could pave the way for further collaboration and joint ventures. Qatar’s limited oil supply contrasts with Kuwait’s abundance, presenting an opportunity for strategic partnerships. Developing such strategies could benefit both nations significantly. Concluding a long-term gas agreement would be a strategic move, ensuring sustained benefits for both Kuwait and Qatar for a long term.

By Kamel Al-Harami
Independent Oil Analyst
 Email: [email protected]