Petrobras secures long-term LNG supply with 22-year Cheniere deal

Petrobras, Brazil's state-owned oil and gas company, has secured a long-term supply of liquefied natural gas (LNG) through a 22-year agreement with U.S.-based Cheniere Energy. The deal covers the purchase of 0.8 million tonnes per annum (MTPA) of LNG, aiming to shield Petrobras from the volatility of spot market prices and ensure stable supply.

The agreement comes amid heightened market uncertainty, particularly after QatarEnergy extended a force majeure on deliveries to Edison, an Italian LNG importer, until early December 2026. This has led to the cancellation of 35 LNG cargoes, exacerbating global supply concerns. The situation has been further complicated by geopolitical tensions in the Persian Gulf, including attacks on Qatar's Ras Laffan LNG export terminal, which could take up to three years to repair.

Brazil, primarily an LNG importer, currently operates seven active floating storage and regasification units (FSRUs) to handle imported LNG. Meanwhile, Argentina is emerging as a potential LNG exporter, with two major projects in development. The Argentina LNG project could reach a capacity of 12 MTPA, with potential expansion to 18 MTPA, while the Southern Energy (SESA) project plans to deploy two floating liquefaction units with a combined capacity of 6 MTPA.

The U.S. remains the world's largest LNG exporter, accounting for 26% of global exports in 2025, followed by Qatar and Australia. Disruptions in the Persian Gulf could further boost opportunities for U.S. LNG suppliers.