QatarEnergy, the state-owned energy giant, is in discussions to secure a long-term supply agreement for up to 3 million metric tons per year (mtpa) of liquefied natural gas (LNG) from Woodside Energy’s Louisiana LNG export facility in the US. The potential deal, which could span 15 to 20 years, would source supplies from the 16.5 mtpa facility currently under construction. Both Woodside and QatarEnergy have yet to confirm the negotiations, with Woodside declining to comment on market speculation.
The talks come as QatarEnergy seeks to diversify its LNG supply chains amid disruptions in the Strait of Hormuz, a critical maritime route affected by the ongoing conflict involving the US, Israel, and Iran. The company has also expanded its US LNG exposure through its 70% ownership stake in the Golden Pass LNG project in Louisiana, which is designed to export up to 18 mtpa once completed.
This latest development follows QatarEnergy’s recent agreement with Cheniere Energy to supply 4 mtpa of LNG, with supplies split between Cheniere’s Sabine Pass and Corpus Christi terminals. Additionally, QatarEnergy is in advanced talks with Venture Global to purchase at least 3 mtpa under a potential long-term agreement. Woodside’s Louisiana LNG and Venture Global are among the US suppliers with the largest amounts of uncommitted LNG capacity.
Louisiana LNG is reportedly seeking liquefaction fees exceeding $2.50 per million British thermal units (MMBtu), offering buyers greater contractual flexibility and potentially shorter contract terms in exchange for higher fees.