Kuwait signs deal to buy gas from BP

May 14, 2014

Kuwait signed a five-year liquefied natural gas (LNG) supply deal with BP on May 13, worth an estimated $3 billion, as it seeks to meet rising energy demand to power air conditioning during the scorching Gulf summers, Reuters reported on May 13.

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.

Copyright: Reuters, 2014