QatarEnergy Secures Long-Term U.S. LNG Deals to Hedge Risks
QatarEnergy signed multi-decade agreements with U.S. producers to secure liquefied natural gas supplies following Iranian missile strikes and the closure of the Strait of Hormuz.
State-owned QatarEnergy has signed several long-term agreements to purchase liquefied natural gas (LNG) from the United States to hedge against the closure of the Strait of Hormuz and recover from infrastructure damage. The company signed a 20-year deal with Woodside Energy for 3 million metric tons per year from a Louisiana plant, with deliveries starting in 2030. This follows two agreements with Cheniere Energy for up to 4 million metric tons annually through 2054.
These strategic moves follow Iranian missile attacks in March that damaged the Ras Laffan facility, knocking out 17% of export capacity. QatarEnergy estimates the damage will cost $20 billion in annual lost revenue and require three to five years of repairs. Consequently, the company has extended force majeure for affected buyers until the end of 2026.
CEO Saad Sherida Al-Kaabi announced a strategy to utilize the company's trading operations and fleet of 200 tankers to generate revenue from overseas supplies if Qatar cannot ship its own gas. To further secure its global portfolio, QatarEnergy is partnering with ExxonMobil on the $10 billion Golden Pass LNG plant in Texas.
