QatarEnergy Seeks Long-Term US LNG Contracts Amid Disruption Uncertainty
QatarEnergy is seeking long-term contracts for US liquefied natural gas (LNG) to compensate for capacity lost due to Iranian strikes on its Ras Laffan site. The company is in talks with Venture Global, Cheniere, and Woodside to secure multi-year deals through 2031.
The discussions follow the March attacks that damaged two of QatarEnergy's 14 LNG trains and a gas-to-liquids plant, suspending 12.8 million tons annually of LNG capacity for three to five years. The company has issued force majeure notices, recently extending them to November.
QatarEnergy Trading is looking for 2-3 million metric tons yearly until 2031 from the US market. With around 80% of Qatar's LNG exports going to Asian buyers, the pursuit of long-term volumes from other producers indicates a risk to Qatar's ability to export LNG for several years.
Industry expert Saul Kavonic notes that this signals Qatar considers the disruption of the Strait of Hormuz may be longer lasting than initially hoped. Market players are evaluating scenarios where Qatari gas is unavailable, amid uncertainty regarding the resumption of flows through the key waterway.