QatarEnergy is negotiating multi-year U.S. LNG contracts through 2031 with producers including Venture Global, Cheniere and Woodside, working to replace capacity lost when Iranian strikes damaged its Ras Laffan facility in March. The shift from spot purchases to long-term deals comes as Qatar keeps extending force majeure notices and Asian buyers look for alternative supply.
QatarEnergy is negotiating with several producers to secure multi-year U.S. liquefied natural gas contracts through 2031, three trading and industry sources told Reuters. The talks aim to replace capacity knocked out by Iranian attacks that will take years to repair.
Talks include Venture Global, Cheniere and Woodside
Discussions include Venture Global, Cheniere and Woodside, two of the sources said. The talks mark a shift from QatarEnergy's purchases of dozens of U.S. spot LNG cargoes toward longer-term solutions to cover the shortfall.
Ras Laffan damage sidelines years of capacity
The contract talks are part of the company's effort to replace lost volumes from its Ras Laffan facility, after two of its 14 LNG trains and a gas-to-liquids facility were damaged by Iranian strikes in March, the sources said. QatarEnergy CEO Saad al-Kaabi said in March that the repairs would sideline 12.8 million tons per year of capacity for three to five years.
QatarEnergy Trading, which manages 10 million tons of the company's LNG portfolio, is seeking 2-3 million metric tons per annum through 2031 in natural gas supply, one of the sources said. According to Reuters: "They will have to buy whatever they can get their hands on," a fourth source said.
Force majeure extended as Asian buyers seek alternatives
Having halted production in March, QatarEnergy has renewed force majeure notices monthly, most recently extending them to November, with further extensions possible as the Strait of Hormuz remains closed. QatarEnergy did not respond to a Reuters request for comment, while Venture Global and Cheniere declined to comment and Woodside said it does not comment on market speculation.
About 80% of Qatar's LNG shipments are typically exported to buyers in Asia, and many clients there have started seeking alternatives to Qatari gas. A fifth source said some market participants are stress-testing scenarios in which no Qatari gas is available.
Source: Reuters
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