QatarEnergy signs LNG purchase deals with Cheniere for up to 4 mtpa

Photo: Qatar Energy

BAKU, Azerbaijan, October 22. QatarEnergy has signed two long-term sale and purchase agreements (SPAs) with US-based Cheniere Energy for the purchase of up to 4 million tons of liquefied natural gas (LNG) annually from the United States, QatarEnergy said on October 22.

Under the agreements, LNG will be sourced from Cheniere's Sabine Pass facility in Louisiana and Corpus Christi facility in Texas, both located along the US Gulf Coast. Deliveries are scheduled to begin in 2031 and continue through 2054. The agreements provide for deliveries on a free-on-board (FOB) basis, under which the buyer assumes responsibility for the cargo once it is loaded onto the vessel at the export terminal.

The SPAs were signed by Qatar's Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al-Kaabi, and Cheniere Energy Chairman, President and CEO Jack Fusco.

Commenting on the agreements, Al-Kaabi said they marked “an important milestone in our LNG strategy.”

“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,” he said.

He added that the additional volumes would complement QatarEnergy's existing LNG supplies, strengthen its supply and trading portfolio, and enhance its ability to serve customers worldwide.

The agreements underscore QatarEnergy's strategy of diversifying its LNG procurement sources and maintaining a flexible supply portfolio amid evolving global energy demand. For Cheniere, the deals provide a long-term sales framework for LNG produced at its US export facilities, reinforcing the role of American LNG in international gas markets.

Sabine Pass currently has six fully operational liquefaction units — or “trains” — each capable of producing ~5 mtpa of LNG. These six trains have been brought online ahead of schedule, and all within budget. With all six trains complete, the aggregate nominal production capacity of SPL is approximately 30 mtpa of LNG. Through access to an extensive pipeline network, Sabine Pass has the ability to access natural gas from every supply source in the continental United States east of the Rocky Mountains and works with dozens of natural gas producers and infrastructure companies to purchase natural gas supply and reliably transport the supply to the terminal.

Cheniere’s Corpus Christi Liquefaction facility (CCL) is located on the La Quinta Ship Channel, along the north shore of Corpus Christi Bay in San Patricio County, Texas. CCL has 10 fully operational liquefaction units — or “trains.” The facility’s three containment tanks each have the capacity to store 160,000 cubic meters of LNG — and large enough to fit a 747 airliner. The facility’s two berths have the capacity to receive the world’s largest LNG carrier, the Q-Max, which is 344.4 meters long with a cargo capacity of 266,000 cubic meters of LNG.