QatarEnergy Signs Long-Term Deal to Buy U.S. LNG as Iran War Disrupts Exports

QatarEnergy has signed two long-term agreements to purchase up to 4 million tonnes of U.S. liquefied natural gas annually from Cheniere Energy through 2054, as the Gulf producer continues to grapple with damage to its own export facilities from the war with Iran.

The agreements, announced Thursday, cover 2 million tonnes per annum (MTPA) each from Cheniere’s Sabine Pass facility in Louisiana and Corpus Christi facility in Texas. Deliveries are expected to begin in 2031 and continue through 2054.

Under the contracts, QatarEnergy will purchase the LNG on a free-on-board (FOB) basis, taking responsibility for transporting cargoes from the U.S. terminals. Pricing will be linked to the Henry Hub natural gas benchmark plus a fixed fee.

The deal comes as QatarEnergy faces significant disruptions to its own LNG production following Iranian missile strikes on its Ras Laffan Industrial City in March.

The attacks damaged two LNG production trains with a combined capacity of 12.8 MTPA, knocking out approximately 17% of Qatar’s export capacity. QatarEnergy has warned that repairs could take three to five years, potentially costing $20 billion annually in lost revenue and disrupting long-term supply commitments to customers in Europe and Asia.

While the U.S. contracts will not begin delivering cargoes until the early 2030s, they will give QatarEnergy an additional source of supply outside the Persian Gulf, where energy infrastructure and shipping have faced mounting threats during the conflict.

QatarEnergy described the agreements as part of its broader strategy to diversify its global LNG portfolio.

“This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market,” said Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and CEO of QatarEnergy.

For Cheniere, the agreements secure another major long-term customer for its U.S. Gulf Coast operations.

The company currently operates approximately 56 MTPA of LNG production capacity across Sabine Pass and Corpus Christi, with another 5 MTPA under construction. One million tonnes annually under the new Sabine Pass agreement remains contingent on a final investment decision for the first phase of the terminal’s planned expansion.

The deal highlights QatarEnergy’s growing role not only as a major LNG producer but also as an international LNG trader, while adding another long-term source of U.S. Gulf Coast cargoes that can reach global markets without passing through the Strait of Hormuz.