Kuwait Energy

Rising demand for electricity has prompted Kuwait to sign three multi-billion-dollar deals aimed at significantly boosting the country’s gas imports.

The recent approval of bids worth more than $12bn has paved the way for a major overhaul of two of Kuwait’s refineries, following costly shutdowns earlier this year.

Income from Kuwait’s hydrocarbons sector looks set to rise this year as the country ramps up oil production on the back of growing demand both locally and overseas, particularly from Asia.

Despite holding substantial oil reserves, Kuwait is stepping up its efforts to develop alternative sources of energy. In mid-June the government announced it was inviting bids for the construction of Shagaya, a renewable energy park, as part of its plan to generate 15% of its electricity through non-oil sources by 2030.

Kuwait has announced it is conducting studies into the viability of extracting shale gas from recently identified reserves, although any commercial operation will likely be many years off.

As Kuwait moves to ramp up oil production, it is preparing to take advantage of rising demand in Asian markets and stable oil prices. However, there are concerns that the country could be draining off its hydrocarbons reserves quickly and spending too much on subsidies and social support schemes and not enough on investments.