QatarEnergy has signed a 20-year agreement to purchase up to 3 million metric tons of liquefied natural gas (LNG) annually from Australia’s Woodside Energy, expanding its access to US supplies as disruptions in the Strait of Hormuz and damage to its domestic export infrastructure threaten its ability to meet international demand.
Announced on October 29, the agreement covers LNG from Woodside’s Louisiana LNG project on the US Gulf Coast, with deliveries expected to begin in 2030. The deal provides QatarEnergy with a long-term supply source outside the Gulf while helping Woodside secure customers for its $17.5 billion export facility, which is still under construction.
The agreement marks another step in QatarEnergy’s strategy to diversify its global LNG portfolio as the Middle East conflict continues to disrupt energy production and maritime shipments.
QatarEnergy Expands US LNG Procurement
Under the agreement, Woodside will supply LNG on a free-on-board (FOB) basis, meaning QatarEnergy will take delivery of the cargoes at the export terminal and arrange their transportation.
Supplies will begin with the start-up of Louisiana LNG’s second production train, with volumes increasing to 3 million metric tons per annum (MTPA) following the start-up of Train 3. Deliveries are expected to commence in 2030 and continue for 20 years.
The sale and purchase agreement was signed with Woodside Energy (LA) Investments LLC, a subsidiary of the Australian company. The signing ceremony was attended by Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi, who also serves as QatarEnergy’s president and CEO, and Woodside CEO Liz Westcott.
Al-Kaabi said the agreement would strengthen QatarEnergy’s international supply and trading portfolio and reinforce its position in the US LNG market.
“We are pleased to further enhance our global supply and trading portfolio with another long-term purchase of LNG from the U.S.,” Al-Kaabi said.
“These additional volumes make QatarEnergy the largest buyer of LNG from the U.S. and place us in a stronger position to meet the global growing needs for LNG.”
QatarEnergy said the agreement reflects its confidence in the long-term role of LNG in the global energy mix and supports its strategy to develop a more flexible and geographically diversified portfolio.
Hormuz Disruption Drives Supply Diversification
The agreement comes as Qatar faces mounting challenges to its LNG export operations following Iranian missile strikes on its Ras Laffan export complex and restrictions on shipping through the Strait of Hormuz.
The waterway is a critical route for Qatar’s LNG shipments to customers in Asia and Europe. Its disruption has left QatarEnergy struggling to deliver contracted supplies, exposing the vulnerability of its export operations to prolonged regional instability.
Two production units at Ras Laffan, with a combined annual capacity of 12.8 million metric tons, were damaged in the attacks, according to reporting by The Center Square. The facility’s remaining production units have an annual export capacity of 64.2 million metric tons.
QatarEnergy has also informed some customers that they would not receive LNG until the end of 2026, according to Italian utility Edison and market sources cited by Reuters.
The disruption has increased the strategic importance of securing supplies from outside the Gulf, particularly through long-term contracts that can provide greater flexibility when traditional production and shipping routes are unavailable.
“What really strikes me is the length of the contracts. If you were just trying to fill a three- or four- year gap, you wouldn’t be signing 20-year contracts,” said Hersh Oberoi, global research director at Balfour Capital Group.
“Qatar is clearly treating the Hormuz risk as something that is not going away.”
The length of the Woodside agreement suggests QatarEnergy is looking beyond the immediate supply disruption and preparing for a longer-term shift in its international procurement strategy.
Cheniere Deal Adds to Qatar’s US LNG Commitments
The Woodside agreement follows another major procurement move by QatarEnergy last week, when it signed agreements with US LNG producer Cheniere Energy to purchase a combined 4 million metric tons of LNG annually.
The supplies are expected to come from Cheniere’s export facilities in Cameron Parish, Louisiana, and Corpus Christi, Texas. Deliveries are scheduled to begin in the early 2030s and continue through 2054. However, 1 million metric tons of the annual volume is conditional on a final investment decision for the first phase of Cheniere’s proposed Sabine Pass expansion. The National
QatarEnergy is also expanding its presence in the US LNG industry through its partnership with ExxonMobil in the Golden Pass LNG project in Port Arthur, Texas, a development valued at approximately $10 billion.
The combination of long-term purchases and overseas project investments gives QatarEnergy access to a broader range of LNG supplies while strengthening its position as an international energy trader.
Woodside Secures Major Customer for Louisiana LNG
For Woodside, the agreement provides a significant long-term customer commitment for its Louisiana LNG development, a 16.5-MTPA export facility under construction near Lake Charles, Louisiana.
The project comprises three production trains and is targeting its first LNG production in 2029. Woodside’s agreement with QatarEnergy will supply cargoes from its share of the project’s production, beginning with Train 2 and increasing to 3 MTPA when Train 3 starts operations. SEC+1
The Australian producer has faced challenges securing long-term buyers for the facility. Reuters reported in May that Woodside had struggled to attract customers after seeking liquefaction fees above prevailing US market rates.
Before the QatarEnergy agreement, Germany’s Uniper was the project’s only other long-term buyer, according to Reuters.
The new contract therefore provides Woodside with greater revenue visibility as it advances construction and works to commercialize the facility’s planned export capacity.
US LNG Gains Strategic Importance
The agreements come as American LNG producers pursue expansion plans to capitalize on growing international demand and concerns over energy supply security.
Cheniere Energy and Venture Global are among the major US exporters planning capacity expansions across Louisiana and Texas. Cheniere currently has operational export capacity of approximately 56 million metric tons annually, according to The Center Square.
For QatarEnergy, long-term purchases from US producers offer an additional source of supply while its domestic infrastructure and traditional export routes face disruption. They also strengthen its ability to serve international customers through a combination of domestic production and contracted overseas volumes.
The Woodside agreement highlights how the Middle East conflict is reshaping long-term energy procurement decisions. For Qatar, securing LNG supplies from the United States is no longer simply a portfolio expansion exercise. It is increasingly tied to the security and resilience of its global energy business.
Although deliveries from Louisiana LNG remain several years away, the 20-year commitment signals that QatarEnergy is preparing for a future in which geographic diversification will remain central to its international LNG strategy.