QatarEnergy has signed two long-term agreements with U.S. liquefied natural gas giant Cheniere Energy (NYSE: LNG) to purchase up to 4 million tonnes of LNG annually through 2054, marking a significant shift for one of the world’s largest gas exporters as the Iran war continues to disrupt Gulf energy supplies.
Under the agreements announced Thursday, QatarEnergy will purchase 2 million tonnes annually from Cheniere’s Sabine Pass facility in Louisiana and another 2 million tonnes from Corpus Christi in Texas.
Deliveries are expected to begin in the early 2030s, with prices linked to the U.S. Henry Hub benchmark plus a fixed fee. One million tonnes of the Sabine Pass commitment remains conditional on a final investment decision for the facility’s expansion.
The deal comes as Qatar struggles to restore LNG exports following Iranian strikes on its Ras Laffan complex and prolonged disruptions to shipping through the Strait of Hormuz.
As previously reported by Oilprice.com, the attacks damaged two of Qatar’s 14 LNG production trains, eliminating approximately 17% of national export capacity, with repairs potentially taking three to five years.
QatarEnergy has repeatedly extended force majeure declarations on contracted LNG deliveries to customers in Asia and Europe as the shipping crisis persists.
The company is also developing the Golden Pass LNG export terminal in Texas alongside ExxonMobil, further expanding its exposure to U.S. natural gas production.
QatarEnergy CEO Saad Sherida Al-Kaabi said the Cheniere agreements would diversify the company’s global LNG portfolio and strengthen its ability to serve customers worldwide.
For Qatar, the transaction represents a striking reversal: a longtime LNG export powerhouse is now securing American gas to protect its international trading portfolio against prolonged disruptions at home.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
