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47 min ago 3 min read
QatarEnergy has agreed to buy liquefied natural gas (LNG) from Woodside Energy’s Louisiana project under a 20-year supply agreement, making it the largest buyer of US LNG.
The agreement follows a deal signed last week under which QatarEnergy will purchase four million tonnes per annum (MTPA) of LNG from Cheniere Energy’s Sabine Pass and Corpus Christi facilities.
Together, the agreements give the energy giant additional supply sources outside the Gulf, where exports have been disrupted by the war and restrictions on shipping through the Strait of Hormuz.
“These additional volumes make QatarEnergy the largest buyer of LNG from the US and place us in a stronger position to meet the growing global demand for LNG,” said Saad Sherida Al-Kaabi, QatarEnergy’s President and CEO.
Under the terms of the agreement, Woodside will supply up to 3 MTPA of LNG on a free-on-board basis, with deliveries expected to begin in 2030.
Volumes will initially come from the start-up of Louisiana LNG’s second train, increasing to the full 3 MTPA when its third train begins operations.
The deal also helps Woodside secure long-term buyers for its $17.5bn Louisiana LNG project, which is under construction near Lake Charles, Louisiana. The facility’s first phase comprises three trains with a combined production capacity of 16.5 MTPA.
Until now, Woodside had announced one major long-term LNG sales agreement for the project, with Germany’s Uniper for 1 MTPA.
The additional volumes provide greater certainty over future production sales as Woodside progresses construction of the project.
“It is a strong vote of confidence in Louisiana LNG and represents a significant step in building the project’s long-term customer base,” said Liz Westcott, CEO and Managing Director of Woodside.
“Together, these contracts provide sustained revenue certainty for a material portion of Louisiana LNG production as we progress the project towards first LNG,” she added.
Qatar has historically accounted for around one-fifth of global LNG exports, with all its shipments passing through the Strait of Hormuz.
However, on the Ras Laffan export complex earlier this year damaged facilities responsible for a substantial amount of the country’s LNG production capacity. This forced QatarEnergy to halt production and declare force majeure on affected supply contracts.
The two damaged LNG trains will take around to repair, according to Al-Kaabi. However, repairs on the GTL train at Ras Laffan will be concluded in Q1 2027, meaning it may be back on stream .
