QatarEnergy Signs First US LNG Deal With Cheniere Energy
QatarEnergy signed agreements to purchase 4 million tons of LNG annually from Cheniere Energy through 2054 to offset production losses caused by conflict with Iran.
QatarEnergy signed two long-term sale and purchase agreements with US-based Cheniere Energy to buy up to 4 million tons of liquefied natural gas annually through 2054. This marks the first US offtake deal of its kind for Qatar. Deliveries are scheduled to begin in 2031 on a free-on-board basis, with LNG sourced from Cheniere's Sabine Pass facility in Louisiana and Corpus Christi facility in Texas.
The agreements, signed by QatarEnergy CEO Saad Sherida Al-Kaabi and Cheniere Energy CEO Jack Fusco, come as Qatar faces significant disruptions to its own production and exports. War with Iran has caused damage to the Ras Laffan facility, while turmoil in the Strait of Hormuz has forced the company to reduce shipping flows.
QatarEnergy intends to use the US-sourced LNG to maintain supplies for international customers affected by these disruptions. Saad Sherida Al-Kaabi stated that the purchase will expand and diversify the company's global LNG portfolio and advance its ability to meet evolving market requirements.
