DOHA: Qatar Energy is in talks with Kuwait Petroleum Corporation (KPC) for a new long-term supply of liquefied natural gas (LNG) to help meet rising demand for power generation in the Gulf Arab state, five trading and industry sources told Reuters.

The deal would see Qatar providing Kuwait with 3 million metric tons per annum (mtpa) of the seaborne fuel over 15 years from its North Field project, which is expected to commence operation in 2026, four of the sources said.

Kuwait, an OPEC member and a major oil producer, has been boosting its reliance on imported gas to meet power demand, especially in summer when consumption by air conditioning systems rises sharply, but it is also focusing on ramping up gas production as part of its 2040 growth strategy.

This week, Kuwait faced a second round of scheduled power outages this summer, due to a defect in the gas supply, despite officials indicating there would be no more cuts after the first round in June. Summer temperatures regularly soar above 50 degrees Celsius, raising use of air conditioning and power demand.

The deal is expected to be announced in the fourth quarter of this year, one of the sources said.

A fifth source at KPC said “arrangements” were still being made.

Qatar Energy and KPC were did not immediately respond to Reuters request for comment.

Qatar, one of the world’s top LNG exporters, plans an 85% expansion in LNG output from its North Field’s current 77 million metric tons per year (mtpa) to 142 mtpa by 2030, from previously expected 126 mtpa.

Authorities have urged residents to cut back on electricity use during peak consumption times between 11am and 5pm local time.

In 2020, Kuwait signed a 15-year agreement with Qatar for the supply of 3 mtpa of LNG and would expire by 2035. The new deal from North Field expansion project would mean Qatari supplies to Kuwait will amount to 6 million mtpa at some point later this decade.