QatarEnergy has agreed to buy up to 4 million tons of US liquefied natural gas annually through 2054, securing a long-term source of global LNG supplies as the Gulf state adapts to fallout from the Strait of Hormuz crisis.
The deal arrived shortly after new International Monetary Fund growth forecasts predicted Qatar's economy will contract 15.6% in 2026, marking a major revision from an earlier 8.6% contraction as the Gulf state grapples with LNG production disruptions and lost exports.
What happened: QatarEnergy signed two long-term sale and purchase agreements with US producer Cheniere Energy on Thursday to buy up to 4 million tons per year. Shipments will be split between Cheniere’s Sabine Pass facility in Louisiana and the Corpus Christi Liquefaction facility in Texas. Deliveries are expected to begin in 2031 and continue through the end of 2054.
Under the agreements, purchases will be priced against the US Henry Hub benchmark plus a fixed fee, with deliveries made on a free-on-board basis, meaning QatarEnergy will take responsibility for shipping the LNG from the export facilities. One million tons per year under the Sabine Pass agreement is conditional on a final investment decision for the first phase of Cheniere’s planned expansion there.