QatarEnergy has secured a major long-term deal to buy up to three million tonnes of liquefied natural gas (LNG) annually from Woodside Energy’s Louisiana LNG project. The 20-year agreement, announced on Thursday, makes QatarEnergy the largest buyer of US LNG, further expanding its US supply portfolio. Deliveries are expected to begin in 2030, with the full three million tonnes to be supplied once the project’s third train starts operations.
The deal comes as QatarEnergy continues to extend force majeure on its own shipments due to disruptions caused by an Iranian strike on its Ras Laffan facilities. The strike knocked out about 17% of Qatar’s LNG capacity, with repairs potentially taking up to five years. The company has pushed force majeure on deliveries to Italy, Pakistan, and Bangladesh until the end of December, forcing some buyers to seek costly spot cargoes.
QatarEnergy’s push into US LNG is part of a broader strategy to hedge against disruptions in the Strait of Hormuz. The company has also signed a deal to buy four million tonnes a year from Cheniere through 2054 and holds a stake in the Golden Pass project in Texas. Meanwhile, Cheniere raised its full-year guidance this week, citing increased demand for US cargoes due to Middle East gas disruptions.
Gulf producers, including Abu Dhabi’s Mubadala Energy and XRG, are also securing US LNG supply amid the ongoing US-Israeli conflict with Iran. The Strait of Hormuz, which typically carries about a fifth of global LNG trade, has seen shortfalls that pushed Europe’s TTF gas benchmark above €95 a megawatt hour this week.