Anglo-Dutch energy giant Royal Dutch Shell and the world's largest liquefied natural gas (LNG) producer Qatargas have signed a new deal to supply LNG to Kuwait.
The agreement includes long-term sale and purchase of natural gas to provide 1 million tons of LNG per annum to Kuwait starting from this year, according to a statement by Qatargas on Monday.
As part of the deal, Qatar Liquefied Gas Company, a joint venture between Qatar Petroleum with a 70% stake and Shell with a 30% share, will provide LNG to Kuwait.
"We believe this agreement provides a win-win solution for both companies," Qatargas CEO Khalid bin Khalifa Al-Thani said in the statement.
Saad Sherida Al-Kaabi, Qatar's minister of energy, described Kuwait in a statement as "a very important LNG market."
Qatar is the world's LNG champion for 13 consecutive years. The small Arab nation plans to increase its LNG production capacity by 64% per annum from 77 million tons to 126 million tons, according to Al-Kaabi on Nov. 25, 2019.
As part of the agreement, Kuwait, an oil-rich country, is trying to lower its dependence on oil as a source for electricity generation.
By Ovunc Kutlu