Qatar agrees to buy U.S. LNG to 2054 as war disrupts supply

QatarEnergy signed a deal with Cheniere Energy Inc. to buy 4 million tons a year of liquefied natural gas through 2054, the Middle East nation’s first such U.S. offtake deal as its own production has been throttled by the Iran war. This deal comes as Qatar, one of the largest LNG exporters before the conflict, looks to supply customers who have had their shipments disrupted after the Gulf nation’s Ras Laffan facility was damaged during the war. QatarEnergy has also been forced to dramatically reduce flows as shipping traffic through the crucial Strait of Hormuz remains in turmoil. QatarEnergy will buy 2 million tons a year of LNG from each of Cheniere’s two plants, Sabine Pass in Louisiana and Corpus Christi in Texas, according to a statement Oct. 22. Delivery will begin in the early 2030s and continue through 2054. The company had been in talks with U.S. companies for long-term supplies, Bloomberg News previously reported. Out of the committed volumes, 1 million tons a year from Sabine Pass is subject to a final investment decision on the expansion phase at that facility. QatarEnergy is a majority owner in the U.S. Golden Pass LNG export plant in Texas, which is in the process of starting up. ExxonMobil Holdings Corp. is also a shareholder in the project.

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