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Qatar, one of the world’s leading exporters of liquefied natural gas (LNG), has signed a long-term agreement to purchase gas from the United States. Under the deal, Qatar’s state-owned energy company,
Qatar, one of the world’s leading exporters of liquefied natural gas (LNG), has signed a long-term agreement to purchase gas from the United States. Under the deal, Qatar’s state-owned energy company, Qatar Energy, will buy up to 4 million tons of U.S. LNG annually. Deliveries are expected to begin in 2031 and continue through 2054.
According to an official announcement issued by Qatar Energy on October 22, the company has signed two separate agreements with U.S. energy firm Cheniere Energy. Under the contracts, Qatar Energy will source LNG from the Sabine Pass facility in Louisiana and the Corpus Christi facility in Texas. Qatar is a major global LNG exporter, supplying natural gas to numerous markets, including Asia and Europe. However, the new agreements are intended not only to meet Qatar’s domestic requirements but also to diversify Qatar Energy’s gas trading activities and supply sources in international markets.
Qatar’s Minister of State for Energy Affairs and Qatar Energy President and CEO, Saad bin Sherida Al-Kaabi, described the agreements as an important milestone in the company’s LNG strategy. He said the additional volumes of U.S. gas would strengthen QatarEnergy’s existing supply portfolio and help it meet the changing needs of customers around the world.
According to Cheniere Energy, the two agreements provide for the annual supply of 2 million tonnes of LNG from Sabine Pass and another 2 million tons from Corpus Christi. The price of the gas will be linked to the U.S. Henry Hub natural gas benchmark, along with a fixed fee. The company clarified that the supply of 1 million tons of LNG annually from Sabine Pass is conditional on a final investment decision for a proposed expansion project.
The agreements were signed by Qatar Energy chief Saad bin Sherida Al-Kaabi and Cheniere Energy Chairman and CEO Jack Fusco. The deal comes amid continuing tensions in the Middle East and disruptions to maritime traffic through the Strait of Hormuz, raising concerns about global energy supplies. Gulf shipping routes are crucial for Qatar’s LNG exports, while supplies sourced from the United States will provide the company with an additional source of gas outside the Gulf region.
The agreement is also significant because Qatar, traditionally a major LNG-selling country, will now purchase U.S. production to support its international trading operations. QatarEnergy said the contracts reflect its confidence in the long-term importance of natural gas in the global energy system.
