QatarEnergy secures 20-year US LNG supply from Woodside amid Hormuz blockade
- QatarEnergy inks a 20-year deal for US LNG from Woodside, becoming the largest buyer and securing supply outside the Gulf.
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 project, which has few committed buyers.
Last week, Reuters reported that QatarEnergy was in talks with Woodside Energy to buy up to 3 million metric tons of liquefied natural gas per annum (mtpa) from its Louisiana LNG plant under construction.
Under the deal, Woodside will supply LNG on a free-on-board basis from the start-up of Louisiana LNG Train 2, with volumes increasing to 3 million mtpa from the start-up of Train 3.
Edison, Pakistan gas buyers face QatarEnergy supply halt until year-end
QatarEnergy said deliveries are expected to start in 2030, and that the deal makes it the largest buyer of US LNG.
“What really strikes me is the length of the contracts. If you were just trying to fill a three- or four- year gap, you wouldn’t be signing 20-year contracts,” said Hersh Oberoi, global research director at Balfour Capital Group.
“Qatar is clearly treating the Hormuz risk as something that is not going away.”
QatarEnergy also told some clients that it would not receive LNG until the end of this year, according to Italian utility Edison and market sources.
LNG prices have remained near multi-year highs this year, supported by ongoing concerns over the Middle East conflict and forecasts for colder weather.
QatarEnergy offers naphtha for loading inside Hormuz via tender, traders say
Woodside is targeting first LNG in 2029 from the 16.5 mtpa Louisiana export facility. Investment in the project totalled $17.5 billion.
Australia’s top independent oil and gas producer has struggled to sell Louisiana volumes, having sought liquefaction fees above US market rates, Reuters reported in May.
Before QatarEnergy, its only long-term deal for the project was with Germany’s Uniper.
Comments