QatarEnergy turns to US LNG with Woodside deal as Hormuz force majeure drags on
QatarEnergy has signed a 20-year agreement to buy up to three million tonnes a year of liquefied natural gas from Woodside Energy’s Louisiana LNG project. The deal deepens Doha’s push into US supply, which it is using to hedge against disruption in the Strait of Hormuz . Supplies will be delivered free-on-board. They will start when the project’s second train begins operating and rise to the full…
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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