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Qatar to purchase 3 million tons of natural gas annually, with deliveries starting in 2030; long-term agreement comes amid Strait of Hormuz crisis
Qatar to purchase 3 million tons of natural gas annually, with deliveries starting in 2030; long-term agreement comes amid Strait of Hormuz crisis
Qatar, one of the world’s major liquefied natural gas (LNG) exporters, has signed a 20-year agreement to purchase natural gas from the United States. Under the deal, QatarEnergy, Qatar’s state-owned energy company, will buy 3 million tons of natural gas annually from a gas company based in the US state of Louisiana. LNG deliveries are scheduled to begin in 2030.
The development comes as Qatar’s gas production has been affected by the war between the United States and Israel against Iran and restrictions on maritime traffic through the Strait of Hormuz. Qatar is one of the world’s leading LNG suppliers, but regional tensions and the situation in the Strait of Hormuz have raised concerns about energy production and transportation. According to analysts, the 20-year agreement to purchase gas from the United States indicates that Qatar is making long-term energy arrangements amid uncertainty over how soon the Strait of Hormuz crisis will end. However, the duration of the agreement alone does not conclusively establish that Qatar believes the crisis will persist in the near future.
Under the agreement, LNG purchased from the United States will contribute to Qatar’s energy requirements and supply management. The deal is also significant because Qatar itself is one of the world’s largest LNG exporters, yet it is now arranging to purchase gas from the United States on a long-term basis.
Meanwhile, LPG prices have remained high in several Pakistani cities, continuing to place a financial burden on consumers. In Lahore, the price of LPG has reached Rs750 per kilogram, while it is being sold for Rs600 per kilogram in Karachi. Prices in Rawalpindi and Islamabad have also reached Rs600 per kilogram. LPG is selling for Rs600 per kilogram in Quetta and Rs570 per kilogram in Peshawar. Speaking to Geo News, Ali Haider, senior vice chairman of the LPG Marketers Association, had said that supplies had resumed not only through arriving ships but also across the Iranian border. However, he noted that a shortage of vehicles was currently posing a challenge. Haider expressed hope that, as the supply chain returned to normal, the prevailing price of LPG in Karachi would fall to Rs480 per kilogram within the next 48 hours.
