QatarEnergy Seeks Multi-Year US LNG Deals Amid Strait of Hormuz Uncertainty
QatarEnergy is negotiating multi-year US liquefied natural gas contracts through 2031 to replace capacity knocked out by Iranian attacks. The company's Ras Laffan facility suffered damage in March, sidelining 12.8 million tons per year of LNG capacity for three to five years.
The discussions involve Venture Global, Cheniere, and Woodside, with QatarEnergy seeking 2-3 million metric tons per annum through 2031. This shift from purchasing spot LNG cargoes suggests the company is now seeking longer-term solutions to cover the shortfall.
Saul Kavonic, head of energy research and advisory at MST Marquee, noted that Qatar's pursuit of long-term LNG volumes indicates they consider the disruption of the Strait of Hormuz may prove longer lasting than initially hoped. About 80% of Qatar's LNG shipments are typically exported to buyers in Asia.