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TEI - Energy Outlook

Kuwait’s Projects Outlook

A strong growth is seen in the Kuwait’s projects market in the months ahead this year.
With the Opec+ decision to begin unwinding members’ 2024 voluntary crude production cuts from October, a gradual return of 135,000 barrels per day (bpd) of Kuwaiti crude is expected, bringing output back up to 2.55 million bpd by the end of next year and lifting oil GDP growth to 4% in 2025. 

The country is planning to increase its oil production capacity to 4 million bpd by 2035. State-owned Kuwait Oil Company (KOC) is seeking to ramp up its natural gas production in line with Kuwait Petroleum Corporation's (KPC) strategy to meet the domestic demand for energy. KOC plans to achieve a daily gas production capacity of 1.5 trillion cubic feet by 2040.

There has been a significant surge in oil project activity in the country. The total value of active oil projects in pre-execution phases and under execution rose to more than $14.9bn at the end of H1, 2024. Whereas the total value of active gas and chemical projects was $7bn and $11.2bn, respectively, in the same period.

The KPC plans to launch several projects in petrochemicals and other oil industries in collaboration with the private sector. It plans to spend $410bn until the end of 2050. Out of the $410bn, KPC and its subsidiaries intend to invest $110bn on transition projects.
A total of $300bn is expected to be spent on conventional energy projects, such as the development of oil and gas production as well as refinery projects.

The Kuwait power market growth rate is expected to be more than 4% during 2023-2035. The Ministry of Electricity and Water plans to add 17.6 GW of electricity generation capacity, increasing the total generating capacity to 32 GW by 2035.


The Kuwait Authority for Partnership Projects (KAPP) is moving ahead its programme of PPP projects. It is making progress in tendering its next independent water and power projects. The National Bank of Kuwait (NBK) anticipates that nearly $7 billion worth of power-related projects will be awarded in the second half of 2024. These include the Al-Zour Independent Water and Power Plant (IWPP) phases 2 & 3, the Al-Khairan IWPP, and the Al-Shagaya Renewable Energy Complex.

Kuwait aims to generate 15% of its electricity from renewables by 2030. Renewable generation capacity is expected to reach 4 GW by 2035. Solar PV power is expected to grow the fastest at 43.09% by 2035, followed by wind at 25%.

The KOC has signed a MoU with the Ministry of Electricity, Water, and Renewable Energy to incorporate renewable energy plants into the national electricity grid. This initiative aims to generate 1 GW of electricity from solar energy to power the company’s facilities. The collaboration involves developing strategies for energy transformation and achieving carbon neutrality by 2050. 

The country’s projects growth is set to advance in the coming years with its ambitious plans for developing key sectors including power, water, and oil and gas.


Pallavi Agrawal

Editor