QatarEnergy secures 20-year US LNG supply from Woodside amid Hormuz blockade
Australia’s Woodside Energy will supply QatarEnergy with LNG from its Louisiana project under a 20-year deal, the companies said on Thursday, as the Hormuz blockade and war damage disrupt output at one of the world’s largest LNG producers. The deal gives QatarEnergy, which has been buying US LNG for its customers, a supply source outside the Gulf and helps Woodside sell capacity at its Louisiana…
QatarEnergy has entered into a 20-year agreement with Woodside Energy to purchase up to three million tonnes of liquefied natural gas (LNG) annually, originating from Louisiana. This deal strengthens Qatar's reliance on US LNG supply, which it is utilizing as a hedge against potential disruptions in the Strait of Hormuz. Deliveries will commence once the project's second train is in operation, with the full three million-tonne capacity reached upon the third train's launch.
The state news agency, QNA, anticipates first deliveries to begin in 2030. QatarEnergy's Minister of State for Energy Affairs, Saad Al Kaabi, highlighted the significance of this procurement, stating that the company has become the largest buyer of LNG from the US. The Golden Pass project in Texas and Qatar's expanding US purchases align with the company's long-term growth and diversification strategy.
Woodside's CEO, Liz Westcott, expressed that the agreement serves as a "strong vote of confidence in Louisiana LNG." The Louisiana LNG project, situated near Lake Charles, will feature three trains with a combined capacity of 16.5 million tonnes annually. The project obtained a final investment decision in April of the previous year and aims for initial LNG production in 2029.
This deal follows QatarEnergy's recent commitment to purchase four million tonnes annually from Cheniere through 2054, with Golden Pass commencing exports in March. Additionally, QatarEnergy continues to extend force majeure clauses on its own shipments. Recently, Italy's Edison announced that Qatar would extend force majeure on deliveries to Italy until the end of December, while Pakistan and Bangladesh were informed that the notices would remain in effect until the end of the year.
Bangladesh's Petrobangla opted to purchase spot cargoes at a higher cost. An Iranian strike on Ras Laffan reduced Qatar's LNG capacity by approximately 17 percent, and repairs may take up to five years to complete.
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- QatarEnergy turns to US LNG with Woodside deal as Hormuz force majeure drags on thenationalnews.com
- QatarEnergy to Purchase 3 MTPA of US LNG from Woodside Energy gulf-times.com
