Kuwait Petroleum Corp. (KPC) has signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand.
A report in Bloomberg said that the sales purchasing agreement with Shell International Trading Middle East Ltd. will start in 2020. The contract will cover 2 million to 3 million metric tons of LNG a year.
The volumes delivered under the contract will be used to fire up KPC’s power stations.
A press release said that Kuwait wants cleaner burning energy sources such as natural gas to reduce emissions and improve air quality.
The deal would “provide fuel to power stations in Kuwait,” KPC said in the statement but did not disclose the value of the deal or the volumes that will be supplied.
Kuwait’s oil company has previously secured LNG cargoes from Shell through agreements signed in 2010 for a four-year contract, and another signed in 2014 worth US$12 billion to see supplies through to 2018.
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