QatarEnergy Becomes Largest US LNG Buyer to Hedge Iran War
QatarEnergy signed multi-decade deals with US producers to secure LNG supplies after Iranian missile strikes damaged its Ras Laffan facility and disrupted the Strait of Hormuz.
State-owned QatarEnergy has signed long-term agreements to purchase liquefied natural gas (LNG) from United States producers, positioning itself as the largest buyer of US LNG. The strategy serves as an insurance policy against regional instability following the outbreak of the US-Iran war on February 28. In March, Iranian missiles damaged two LNG trains at the Ras Laffan facility, reducing export capacity by 17% and causing an estimated $20 billion in annual lost revenue. Repairs are expected to take three to five years.
To mitigate these losses and hedge against the closure of the Strait of Hormuz, QatarEnergy secured a 20-year contract with Woodside Energy for 3 million metric tons per year from Louisiana facilities starting in 2030. It also signed two agreements with Cheniere Energy for up to 4 million tons annually through 2054, with deliveries beginning in 2031. Additionally, the company is partnering with ExxonMobil on the $10 billion Golden Pass LNG plant in Texas.
CEO Saad Sherida Al-Kaabi stated that the company will use its trading operations and fleet of 200 tankers to generate revenue from overseas supplies if Qatar cannot ship its own gas. This shift has already impacted global trade; India's Petronet LNG is currently negotiating with Qatar to secure US-sourced LNG starting in 2028 after QatarEnergy declared force majeure on supplies in March. The International Energy Agency estimates global LNG export capacity will expand by 50% between 2025 and 2030, driven largely by the US and Qatar.
