QatarEnergy announced on Thursday that it had signed two long-term agreements with US energy company Cheniere Energy to purchase up to 4 million tonnes of liquefied natural gas (LNG) annually, with deliveries scheduled to continue until 2054.
The agreements will secure LNG supplies from Cheniere’s Sabine Pass terminal in Louisiana and Corpus Christi facility in Texas, both situated along the US Gulf Coast.
According to QatarEnergy, shipments are expected to begin in 2031 and continue through 2054, strengthening the company’s international LNG trading operations.
The contracts will operate on a free-on-board (FOB) basis, meaning QatarEnergy will assume responsibility for transporting the LNG once it is loaded at the US export terminals.
In a separate statement, Cheniere confirmed that QatarEnergy would purchase 2 million tonnes of LNG annually from each terminal.
The agreed prices will be linked to the US Henry Hub natural gas benchmark, with an additional fixed fee.
However, Cheniere said that 1 million tonnes per year under the Sabine Pass agreement would depend on a positive final investment decision for the first phase of its planned expansion project.
The agreements were signed by Qatar’s Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al-Kaabi, alongside Cheniere Chairman, President and CEO Jack Fusco.
Al-Kaabi described the agreements as a significant development in QatarEnergy’s long-term international 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 supplies would complement QatarEnergy’s existing LNG production, strengthen its trading activities and improve its capacity to meet customer demand worldwide.
Fusco, meanwhile, described the agreements as an important long-term commercial commitment that would further consolidate Cheniere’s position in the US LNG industry.
Cheniere currently operates the Sabine Pass and Corpus Christi LNG facilities, which have a combined production capacity of approximately 56 million tonnes annually, with further capacity under construction.
The company is also pursuing an expansion of its Sabine Pass terminal that could eventually increase the facility’s total production capacity to more than 50 million tonnes per year.
For QatarEnergy, the agreements represent another step towards diversifying its sources of LNG and expanding its presence in international energy markets.
The announcement comes amid heightened tensions in the Middle East and reported disruptions to energy shipments through the Strait of Hormuz, a vital maritime route connecting Gulf energy producers with global markets.