QatarEnergy Signs Deals for Up to 4 Million Metric Tons of U.S. LNG a Year

QatarEnergy signed agreements to buy up to 4 million metric tons of liquefied natural gas (LNG) annually from two U.S. Gulf Coast terminals, adding long-term supply contracts that extend through 2054.

The agreements were signed Oct. 22. Their combined annual volume is split evenly between Cheniere’s Sabine Pass facility in Louisiana and Corpus Christi facility in Texas, with each set to supply 2 million metric tons.

QatarEnergy expects deliveries to start in 2031 and continue through 2054. The contracts use free-on-board terms, and their purchase price is linked to the Henry Hub natural gas benchmark plus a fixed fee.

A portion of the Sabine Pass supply is conditional: 1 million metric tons per year will depend on a positive final investment decision for the first stage of the terminal’s expansion. That stage is expected to include Train 7 and equipment to re-liquefy boil-off gas, with production capacity above 6 million metric tons annually.

The broader Sabine Pass expansion is designed for peak capacity of about 20 million metric tons per year. The conditional volume is part of the agreement’s Sabine Pass allocation; the full expansion figure describes the project’s planned peak capacity.

“This major long-term purchase will expand and diversify our global LNG portfolio,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and QatarEnergy president and CEO.