Kuwait looks to sign natural gas agreement with Iran

03 June 2014 06:27 Source:ICIS News

A natural gas flareKUWAIT CITY (ICIS)--Kuwait is looking to sign an agreement with Iran to secure gas supplies, according to state-run Kuwait News Agency (KUNA) late on Monday.

The possible agreement comes after talks between Iranian President Hassan Rohani and Kuwaiti Emir Sheikh Sabah al-Ahmad al-Sabah over the weekend.

According to KUNA, citing Kuwait's Minister of Oil Ali Al-Omair, the two sides “expressed readiness to cooperate on supplying Kuwait with Iranian gas”.

Both countries will outline the details of the agreement in upcoming talks in Kuwait, although no dates were set.

Iran’s gas supply deal with its neighbour Pakistan through a pipeline has been on and off the table a few times because of sanctions imposed by the US and the EU on Tehran for its alleged nunclear weapons programme.

The Iranian side of the $7.5bn project is almost complete, but Pakistan has been running into repeated problems paying for the 780 kilometre (485 mile) section to be built on its side of the border.

In the past US officials had warned that the Iran-Pakistan pipeline project risk triggering sanctions.

Iran has the second largest gas reserves in the world but has been strangled by a Western embargo that has seen its crude exports slashed by half in the past year.

It currently produces around 600m cubic metre (cbm) of gas per day, almost all of which is consumed domestically due to lack of exports. Its only foreign client is Turkey, which buys about 30m cbm of gas per day.

Additional reporting by Tahir Ikram

By Muhamad Fadhil