Qatar, the world's second-largest LNG exporter before the Iran war, is set to become the largest buyer of U.S. LNG. QatarEnergy signed long-term deals with Cheniere and Woodside as the Hormuz crisis keeps blocking much of its exports.
Qatar will become the biggest buyer of liquefied natural gas from the United States, the producer that overtook the Gulf nation as top LNG exporter earlier this decade. The reversal follows the disruption the Iran war and the closure of the Strait of Hormuz inflicted on Qatar's own LNG industry.
Iranian attacks cut Qatar's export capacity
QatarEnergy is now repairing damage at its LNG facilities from Iranian missile attacks in March. The attacks took out 17% of Qatar's export capacity and caused an estimated loss of $20 billion in annual revenue, QatarEnergy said in March.
Seven months later, very few cargoes move through the Strait of Hormuz. QatarEnergy has also declared force majeure for up to five years on some long-term LNG contracts, and last week it extended the force majeure on deliveries to Asia and Europe through the end of December 2026.
Cheniere and Woodside deals diversify supply
With its only route to market blocked, Qatar last month signed two separate agreements to buy LNG from U.S. producers. Two long-term deals with Cheniere cover up to 4 million tons per annum from the Sabine Pass and Corpus Christi export facilities, with deliveries expected to begin in 2031 and continue through 2054.
The Qatari firm also agreed to buy 3 million tons per annum from Woodside Energy's Louisiana LNG project, which is under construction. Deliveries on a free-on-board basis are set to begin in 2030 for 20 years.
According to QatarEnergy's Saad Sherida Al-Kaabi, the additional volumes "make QatarEnergy the largest buyer of LNG from the U.S."
Source: Oilprice.com
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