QatarEnergy announced recently that it signed two long-term agreements with US energy company Cheniere to purchase up to 4 million tons of liquefied natural gas (LNG) annually from facilities in Louisiana and Texas through 2054
The agreements cover LNG supplies from Cheniere’s Sabine Pass facility in Louisiana and Corpus Christi facility in Texas, both located along the US Gulf Coast, QatarEnergy said in a statement.
Under the agreements, deliveries are expected to begin in 2031 and continue through 2054 on a free-on-board (FOB) basis, meaning QatarEnergy will take responsibility for the LNG shipments at the loading ports.
Cheniere said in a separate statement that QatarEnergy would purchase 2 million tons annually from each facility, with prices indexed to the US Henry Hub natural gas benchmark plus a fixed fee.
The US company added that 1 million tons annually under the Sabine Pass agreement would be subject to a positive final investment decision on the first phase of its planned expansion project.
The agreements were signed by Qatar’s Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al Kaabi and Cheniere chairman, President and CEO Jack Fusco.
Al Kaabi described the agreements as an important milestone in QatarEnergy’s LNG strategy.
“This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market,” he said. He added that the additional volumes would complement QatarEnergy’s existing LNG supplies, strengthen its trading portfolio and enhance its ability to serve customers worldwide.
For his part, Fusco said the agreements represented a major long-term commercial commitment and reinforced Cheniere’s position in the US LNG industry.
The deal comes as QatarEnergy seeks to diversify its global LNG supply and trading portfolio while strengthening its position in international energy markets.
Cheniere operates the Sabine Pass and Corpus Christi LNG facilities, with a combined production capacity of approximately 56 million tons annually and additional capacity under construction.
The company is also developing an expansion of its Sabine Pass facility, which could increase the terminal’s total production capacity to more than 50 million tons annually.
The agreements come amid heightened tensions in the Middle East and disruptions to energy shipments through the Strait of Hormuz, a strategic waterway connecting the Gulf with international markets.
Qatar, one of the world’s leading LNG exporters, relies heavily on maritime routes through the strait to deliver gas to customers in Asia and Europe.
The purchase of US-produced LNG is expected to provide QatarEnergy with additional supply options outside the Gulf, allowing it to diversify its trading portfolio and reduce its reliance on shipments originating from the region.
Alongside, Australia’s Woodside Energy will supply QatarEnergy with LNG from its Louisiana project under a 20-year deal, the companies said recently, as the Hormuz blockade and war damage disrupt output at one of the world’s largest LNG producers.
The deal gives QatarEnergy, which has been buying US LNG for its customers, a supply source outside the Gulf and helps Woodside sell capacity at its Louisiana project, which has few committed buyers.
Under the deal, Woodside will supply LNG on a free-on-board basis from the start-up of Louisiana LNG Train 2, with volumes increasing to 3 million mtpa from the start-up of Train 3.
QatarEnergy said deliveries are expected to start in 2030, and that the deal makes it the largest buyer of US LNG.
