Qatar to Purchase 7 Million Tons of US Gas Annually

QatarEnergy is expanding its long-term purchases of U.S. liquefied natural gas (LNG), a move that bolsters its ability to meet customer commitments and diversify supply sources away from the Strait of Hormuz, where navigation disruptions since the outbreak of the Iran war have hampered a significant portion of the country’s exports.

On Thursday, the Qatari company signed an agreement with Woodside Energy to purchase 3 million tons of LNG annually for 20 years from the Louisiana LNG project, developed by the Australian firm on the U.S. Gulf Coast. Deliveries are expected to begin in 2030, according to a post on the company’s X page.

The deal follows an agreement announced a week earlier between QatarEnergy and U.S.-based Cheniere Energy to buy 4 million tons of LNG annually until 2054. Combined, the two agreements raise contracted volumes to 7 million tons annually, with different delivery start dates.

The two agreements provide QatarEnergy with additional supply sources outside the Arabian Gulf, enhancing the flexibility of its trading portfolio and its capacity to meet customer needs in global markets, particularly amid ongoing risks to LNG tanker movements through the Strait of Hormuz.

This flexibility has grown increasingly important after Qatar’s Ras Laffan facility was damaged during the Iran war, forcing the company to sharply curtail exports due to navigation disruptions. This prompted QatarEnergy to seek alternative shipments from the United States and other markets.

According to a previous Bloomberg report, Qatar’s LNG exports fell by approximately 90% between April and the end of September compared to the same period last year, before shipments began to gradually recover through the strait in September.

Despite this recovery, transit operations still face security risks and volatility that limit the company’s ability to ensure consistent shipments. Qatar lacks an alternative route to export domestically produced LNG without passing through the Hormuz Strait.

The new U.S. supplies differ from the spot shipments the company relied on during the war to cover shortfalls. The long-term agreements provide an additional supply base that can be leveraged to diversify its trading portfolio in the future. However, volumes contracted with Woodside will not begin before 2030 and thus will not directly offset current shipping disruptions.

Saad bin Sherida Al Kaabi, Minister of State for Energy Affairs and Managing Director and CEO of QatarEnergy, stated that the new agreement will strengthen the company’s global LNG trading portfolio. He expressed confidence that the additional volumes would make QatarEnergy the largest buyer of U.S. LNG, positioning it more strongly to meet growing global fuel demand.

He added that the U.S. Golden Pass project, alongside the company’s growing portfolio of LNG purchases in the United States, reinforces QatarEnergy’s role in the sector and supports its long-term growth and diversification strategy.

QatarEnergy holds a majority stake in the Golden Pass LNG export project in Texas, in partnership with ExxonMobil, strengthening its presence in the U.S. gas market through production, procurement, and trading.

Over recent months, the company has intensified U.S. gas purchases through its trading arm to compensate for disrupted Qatari shipments and maintain relationships with customers in Asia and Europe, according to Bloomberg.