Business · Energy & Commodities · 5 hrs ago
QatarEnergy agrees to buy 4 million tonnes of US LNG a year
QatarEnergy agreed to buy 4 million tonnes of US liquefied natural gas a year from US company Cheniere Energy.
Two million tonnes a year will come from Cheniere’s Sabine Pass terminal in Louisiana, and two million from its Corpus Christi terminal in Texas.
Deliveries are due to start in the early 2030s and continue through 2054.
The deal comes as war involving the United States, Israel and Iran has disrupted shipping through the Strait of Hormuz, the only route for Qatar’s LNG exports.
The agreement gives Qatar a way to diversify its gas supplies beyond the Gulf and provide more flexibility for its customers.
One million tonnes of the annual supply depends on a positive final investment decision for the first phase of an expansion at Sabine Pass.
Analysts expect QatarEnergy to seek more long-term LNG deals in other regions, including Africa.
QatarEnergy has signed agreements to buy 4 million tonnes of US liquefied natural gas a year from Cheniere Energy.
Deliveries are expected to begin in 2031 and continue through 2054, although one report describes the start as the early 2030s.
Two million tonnes a year will come from Cheniere’s Sabine Pass facility in Louisiana and two million from its Corpus Christi facility in Texas.
The deal is intended to expand and diversify QatarEnergy’s LNG supply portfolio amid disruption to shipping through the Strait of Hormuz.
One million tonnes a year of the contracted volume depends on a positive final investment decision for the first phase of an expansion at Sabine Pass.
- Who
- QatarEnergy and US LNG producer Cheniere Energy.
- What
- QatarEnergy agreed to buy 4 million tonnes of LNG a year under two long-term agreements.
- When
- The agreements were signed on Thursday, October 22, 2026. Deliveries are expected to start in 2031 and continue through 2054.
- Where
- The signing ceremony was held in Doha. LNG will be supplied from facilities in Louisiana and Texas.
- Why
- The deal will diversify QatarEnergy’s LNG portfolio and supply options amid disruption to shipping through the Strait of Hormuz.
This story does not have two clearly opposing sides.
War involving the United States, Israel and Iran and Tehran’s response disrupted shipping through the Strait of Hormuz, according to Al Eqtisadiah.
QatarEnergy and Cheniere signed two long-term LNG purchase agreements at a ceremony in Doha.
LNG deliveries are expected to begin.
The agreements’ delivery period is expected to end.
- Annual volume
- 4 million tonnes of LNG
- Sabine Pass
- 2 million tonnes a year from Louisiana
- Corpus Christi
- 2 million tonnes a year from Texas
- Delivery period
- 2031–2054, according to Dünya
- Conditional volume
- 1 million tonnes a year depends on a positive final investment decision for the first phase of the Sabine Pass expansion
2 sources
What people are saying
This large-scale long-term purchase will expand and diversify our global LNG portfolio and enhance our ability to meet the changing needs of the market.
Qatar needs to diversify its sources of supply... to cover any possible future situation in which it may face a problem obtaining LNG through the Strait of Hormuz.
Therefore, restoring freedom of navigation in the strait serves Doha’s highest national interest, but if that cannot be achieved, building a larger portfolio of global LNG supplies may be the best alternative option it can take.