Qatar Energy signed a deal with Cheniere Energy Inc. to buy 4 million tons a year of liquefied natural gas through 2054. This marks the Middle East nation's first such US offtake deal as its own production has been throttled by the Iran war. Qatar, one of the largest LNG exporters before the conflict, looks to supply customers who have had their shipments disrupted after the Gulf nation's Ras Laffan facility was damaged during the war. Qatar Energy has also been forced to dramatically reduce flows as shipping traffic through the crucial Strait of Hormuz remains in turmoil.
Qatar Energy will buy 2 million tons a year of LNG from each of Cheniere's two plants, Sabine Pass in Louisiana and Corpus Christi in Texas, according to a statement Thursday. Delivery will begin in the early 2030s and continue through 2054. Out of the committed volumes, 1 million tons a year from Sabine Pass is subject to a final investment decision on the expansion phase at that facility.
President and CEO of Qatar Energy, Saad Sherida Al-Kaabi, said the two deals with Cheniere represented an important milestone for the company's LNG strategy. "This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market," Al-Kaabi said. "The additional volumes will complement Qatar Energy's existing LNG supplies, enhance our supply and trading portfolio, and strengthen our ability to serve customers across the globe."
Qatar Energy is a majority owner in the US Golden Pass LNG export plant in Texas, which is in the process of starting up. Exxon Mobil Holdings Corp. is also a shareholder in the facility, which has a planned capacity of 18 million tons a year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing