The future is bright for LNG in Kuwait

Kuwait’s growing domestic gas demand and limited prospects for growth in gas production will create an attractive market for LNG in the Middle East and Africa (MEA) region that will continue to draw in supplies from the United States and Australia. However, Qatar is expected to remain the dominant LNG supplier to Kuwait in the coming years.

Intensifying competition for gas between different sectors is also increasing Kuwait’s reliance on LNG imports. Kuwait sources most of its LNG from Qatar but supplies are also arriving from the US and Australia. Consequently, Qatar is taking steps to protect and increase its market share of LNG in Kuwait, partly by signing new supply contracts with Kuwait. Qatar sent 0.85 mt of LNG to Kuwait in H1 2016 compared with 0.16 mt in H1 2015. More importantly, the share of Qatari LNG in Kuwait’s total LNG imports increased to 56.3% in H1 2016 from 17% in H1 2015.