QatarEnergy pursues US LNG contracts through 2031

QatarEnergy is negotiating multi-year liquefied natural gas supply agreements with US producers running through 2031 as it seeks to replace output lost after Iranian strikes damaged key facilities at Ras Laffan, people familiar with the talks said.

Discussions include Venture Global, Cheniere Energy and Woodside Energy, according to people with knowledge of the negotiations. The move would shift QatarEnergy beyond the spot-market purchases it has used to cover missing cargoes and towards longer arrangements designed to bridge a supply shortfall expected to persist for years.

QatarEnergy Trading is seeking about 2 million to 3 million tonnes of LNG annually through 2031, one person familiar with the discussions said. The trading arm had handled roughly 10 million tonnes of the company’s LNG portfolio, making the planned purchases significant but still well below the production capacity disabled at Ras Laffan.

Two of Qatar’s 14 LNG production trains and a gas-to-liquids facility were damaged by Iranian strikes in March. QatarEnergy chief executive Saad Sherida Al-Kaabi said at the time that 12.8 million tonnes a year of LNG capacity could remain unavailable for three to five years while repairs are completed.

The disruption has forced QatarEnergy to look outside its own production system to meet contracted deliveries, particularly to customers in Asia, which normally receives the large majority of Qatar’s LNG exports. The company has bought dozens of US spot cargoes since the damage, but multi-year contracts would offer greater certainty over volumes and pricing as the outage continues.

QatarEnergy has also renewed force majeure notices on affected supply contracts month by month, with the current period extending into November, people familiar with the arrangements said. Further extensions remain possible while production remains impaired and shipping through the Strait of Hormuz is restricted.

The shipping disruption has compounded the production loss. Vessel movements through Hormuz, the narrow waterway used by Qatar’s LNG fleet to reach global markets, remain far below pre-war levels. Some Qatar-linked LNG carriers have nevertheless made limited movements through the strait, while unusual ship-to-ship transfers outside the waterway have been used to complete deliveries.

US exporters are well placed to supply replacement volumes because new liquefaction capacity is entering service and additional projects are under construction. Rapidan Energy estimates that US projects being built have about 25 million tonnes a year of LNG capacity not yet committed under long-term contracts.

Of that total, Venture Global has about 10 million tonnes a year available, while Cheniere and Woodside each have roughly 6 million tonnes. About 3 million tonnes is available from Sempra’s Port Arthur LNG project, according to the consultancy’s estimates. Those volumes create several potential sources for QatarEnergy if negotiations advance into binding sales agreements.

Cheniere has continued adding capacity at its Corpus Christi terminal in Texas. The company said last month that six of seven midscale trains in its Stage 3 expansion were operating, with the seventh expected to reach substantial completion during the autumn. Its Corpus Christi facilities were producing more than 24 million tonnes a year, with further capacity under construction.

Industry participants are watching whether QatarEnergy secures flexible destination terms, because such provisions could allow cargoes to be redirected between Asian and European markets as demand, shipping access and requirements change over the repair period.

QatarEnergy did not issue a public statement on the negotiations. Venture Global and Cheniere declined to comment on the discussions, while Woodside said it does not comment on market speculation.

The talks come as Qatar works to maintain customer deliveries while repairing Ras Laffan and navigating a severely constrained regional shipping environment. The lost capacity represents about 17 per cent of Qatar’s LNG export capability, increasing the need for replacement cargoes even if some vessel traffic through Hormuz resumes.