Qatar/Kuwait Gas Supply Agreement Set For September Signing

VOL. XLV

No 27

8-July-2002

QATAR/KUWAIT

Qatar/Kuwait Gas Supply Agreement Set For September Signing

Qatar and Kuwait will sign a final agreement in September for the proposed supply of natural gas from the North Field via a pipeline to Kuwait, the Kuwait News Agency (KUNA) reported on 1 July. Last January the two sides signed a protocol agreement covering the commercial term sheet for the venture, and the expectation was that the final accord would be signed at the end of June (MEES, 4 February). MEES soundings indicate that agreement has been reached on all the major fiscal issues and other matters, but because of the political crisis in Kuwait, some formal procedures will not be completed before the summer holidays. North Field gas is scheduled to start arriving in Kuwait in 4Q 2005 for a 25-year period. The 590km pipeline will be operating at full capacity by mid-2006.