QatarEnergy has taken a major step to secure its liquefied natural gas (LNG) supply by signing two long-term agreements with U.S. energy giant Cheniere Energy (NYSE: LNG). The deals, announced Thursday, will see Qatar purchase up to 4 million tonnes of LNG annually through 2054, a significant shift for one of the world's largest gas exporters.
The agreements cover 2 million tonnes annually from Cheniere's Sabine Pass facility in Louisiana and another 2 million tonnes from Corpus Christi in Texas. Deliveries are set to begin in the early 2030s, with pricing tied to the U.S. Henry Hub benchmark plus a fixed fee. Notably, 1 million tonnes of the Sabine Pass commitment is contingent on a final investment decision for the facility's expansion.
The move comes as Qatar faces ongoing disruptions to its LNG exports due to the Iran war. Iranian strikes on Qatar's Ras Laffan complex and shipping disruptions through the Strait of Hormuz have damaged two of the country's 14 LNG production trains, reducing export capacity by about 17%. Repairs could take three to five years, forcing QatarEnergy to extend force majeure declarations on contracted deliveries to customers in Asia and Europe.
QatarEnergy CEO Saad Sherida Al-Kaabi emphasized that the Cheniere agreements will diversify the company's global LNG portfolio and strengthen its ability to serve customers worldwide. The deal marks a notable reversal for Qatar, which is now securing American gas to mitigate prolonged disruptions at home. The company is also developing the Golden Pass LNG export terminal in Texas alongside ExxonMobil, further expanding its U.S. exposure.