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Kuwait and Iran closer to natural gas supply deal

Emirate looks to secure supplies to meet soaring summer power needs.

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Gas supplies will be fed through turbines at power stations.
Gas supplies will be fed through turbines at power stations.

Kuwait is looking to become the second GCC country after Oman to source much needed natural gas from resource rich Iran.

The two countries are closer to reaching an agreement following talks during a two day visit to Tehran, the Kuwaiti oil minister told local media.

Kuwait is in need of gas supplies to meet its fast rising demand for power generation, particularly during the peak summer months.

It has been importing expensive LNG during the summer period since 2009 and recently secured deals to purchase volumes from international oil companies BP and Shell as well as Qatargas over the next five years.

Earlier this year Oman and Iran came closer to finalising a gas purchase agreement.

The talks between Iran and its GCC neighbours follows a thaw in relations after a breakthrough was made in a dispute with the international community over its nuclear energy programme.

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