QatarEnergy to Buy LNG from Woodside for 20 Years from the U.S.
Cubierto por 3 fuentesPublicado
- GCAPTAIN_NEWSQatar to Buy LNG From Woodside as It Scours for US Supply
- jornal portuarioQatarEnergy comprará 3 millones de toneladas anuales de GNL a Estados Unidos
- Trade newsQatarEnergy locks in second US LNG buy with Woodside Energy deal
- GCAPTAIN_NEWSQatarEnergy Continues LNG Buying Spree to Hedge Future Hormuz Disruptions
QatarEnergy signed a long-term sale and purchase agreement with Woodside Energy Group to acquire 3 million tonnes per annum of LNG over 20 years. The volume will come from the Australian company's Louisiana LNG project, which will complete construction in 2029, with deliveries expected to start in 2030.
Second Purchase in the United States
This is QatarEnergy's second agreement to purchase U.S. LNG in a short span of time. The previous week, the Qatari company had closed a deal with Cheniere Energy for up to 4 million tonnes per annum from the early 2030s through 2054, bringing the total to 7 million tonnes per annum agreed within two weeks. President and CEO Saad Sherida Al-Kaabi stated that these new volumes make QatarEnergy the largest buyer of U.S. LNG, as part of a long-term growth and diversification strategy.
A Hedge Against Possible Closures of the Strait of Hormuz
Al-Kaabi told Reuters that the long-term LNG purchases in the United States and from other producers are part of a trading strategy designed to generate revenue should exports through the Strait of Hormuz be disrupted in the future. According to the CEO, a closure of the strait would send gas prices soaring, allowing QatarEnergy to capture profits that would not otherwise be generated, taking advantage of the arbitrage between lower gas prices in the United States and higher prices in Europe.
Damage at Ras Laffan and Force Majeure
The strategy responds to the losses suffered after the Iranian missile attacks in March against the Ras Laffan plant, which damaged two of the 14 LNG trains and affected a combined capacity of 12.8 million tonnes per annum, representing nearly 17% of Qatar's export capacity. The company declared force majeure in early March and extended it through the end of 2026, while it estimates that repairing the damaged trains will take about three years.
The Agreement with Woodside
For Woodside, the contract with QatarEnergy covers around 18% of the combined capacity of the Louisiana project, which is expected to reach 16.5 million tonnes per annum in total. The Australian company had already signed a 13-year agreement last year with Germany's Uniper for 1 million tonnes per annum from the same facility.
