Qatar's US LNG bet signals a new energy order
LNG•QatarEnergy signed 20-year agreements to buy 3 million metric tons per year of LNG from Woodside Energy and up to 4 million tons from Cheniere Energy, with deliveries starting in 2030 and 2031. The contracts make Qatar the largest buyer of US LNG and reflect concerns about Gulf export disruptions.
1. Long-term US supply
QatarEnergy signed a 20-year agreement to buy 3 million metric tons per year of LNG from Woodside Energy's Louisiana facilities. It also signed agreements with Cheniere Energy for up to 4 million tons per year from its Sabine Pass and Corpus Christi plants through 2054. Deliveries begin in 2030 and 2031, respectively.
2. Diversifying export risk
The purchases appear to be a hedge against disruption to Qatar's own exports, which rely on the Strait of Hormuz. An Iranian missile damaged two of QatarEnergy's 14 LNG trains at Ras Laffan in March, removing about 17% of the country's export capability. QatarEnergy said the outage would cost roughly $20 billion a year in lost revenue, with repairs taking around three years.
3. US and Qatar growth
The International Energy Agency estimates that about 300 billion cubic metres of LNG export capacity will come online worldwide between 2025 and 2030, increasing global supply by around 50%. More than half is expected from the US and roughly a quarter from Qatar. QatarEnergy CEO Saad al-Kaabi said he expects to sign more supply agreements with US and other producers this year.
