QatarEnergy signed a deal to source 4 million tons per year of LNG from Cheniere that extends to 2054, marking Qatar's first US offtake arrangement. The move comes as the company's own output has been constrained by the Iran war, which damaged the Ras Laffan facility and disrupted shipments, while traffic through the Strait of Hormuz has kept flows sharply reduced.
The agreement also signals a push to secure supply beyond the Middle East after the US overtook Qatar as the leading LNG exporter within a decade. Bloomberg News had previously reported that QatarEnergy was in talks with US suppliers for long-term volumes.
QatarEnergy will lift 2 million tons per year from each of Cheniere's plants, Sabine Pass and Corpus Christi, with deliveries slated for the early 2030s and running through 2054, according to a statement Thursday. Of the Sabine Pass commitment, 1 million tons per year is contingent on a positive final investment decision for that facility's expansion phase.
President and CEO Saad Sherida Al-Kaabi said the two Cheniere agreements represented a key step in the company's LNG strategy. "This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market." He added, "The additional volumes will complement QatarEnergy's existing LNG supplies, enhance our supply and trading portfolio, and strengthen our ability to serve customers across the globe."
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Before the conflict, Qatar was among the largest LNG exporters. Damage at Ras Laffan during the war and continued shipping turmoil in the Strait of Hormuz have forced QatarEnergy to curtail output and deliveries, pushing the company to lock in supply elsewhere.
QatarEnergy already has US exposure through Golden Pass LNG in Texas, where it is the majority owner. The project, which includes ExxonMobil Holdings Corp. as a shareholder, is in startup and is planned to produce 18 million tons annually.
For LNG producers, long-term offtake deals are revenue anchors; for buyers, they are insurance against supply shocks. This contract secures decades of volumes for QatarEnergy while underscoring the US role in global LNG trade.
It also highlights a rebalancing in LNG supply chains as Qatar shores up non-Middle East sources during wartime disruptions. Watch knock-on effects for US exporters with expansion plans tied to final investment decisions and for shipping routes that can influence delivered costs.
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