Qatar Energy is on track to become the world's biggest buyer of US liquefied natural gas by early next decade. Two agreements signed in late October will increase US LNG availability by 7 million tonnes annually. Combined with its 70% stake in the Golden Pass project in Texas, Qatar Energy will control 23.7 million tonnes per year from the US by 2033, according to Wood Mackenzie.
The shift comes as war in the Middle East curtails Gulf nation exports, pushing Qatar to hunt for new supply sources. None of the LNG will end up in Qatar, where gas production costs remain among the world's cheapest. Instead, it will be resold and shipped to countries buying liquefied gas to produce electricity and fuel industry, avoiding the Strait of Hormuz chokepoint.
The expansion highlights the extent to which Qatari exports have been affected by the US-Israeli war with Iranian attacks on shipping sharply reducing carriers passing through the strait. Qatari LNG exports have fallen to less than a third of usual levels this year. The latest contracts will give Qatar Energy access to US LNG from 2030 and 2031, providing a buffer against future disruption to Qatari exports. "The ability to market a geographically diverse supply portfolio alongside its own production will provide reassurance to Qatar Energy's customer base," said Wood Mackenzie.
Qatar was overtaken as the world's biggest LNG supplier in 2023 by the US, which has made massive investments in export capacity. In 2020 Qatar Energy launched a trading desk and last year traded more than 20 million tonnes. The move helps Qatar build a global gas business and address perceptions of over-dependence on its domestic system.
Source: Financial Times Companies · Summarized by HeadlinesBriefing