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QatarEnergy signed two long-term sale and purchase agreements with Cheniere Energy on October 22 for the purchase of up to 4 million tonnes per annum of liquefied natural gas from the US producer’s Sabine Pass facility in Louisiana and Corpus Christi facility in Texas. Deliveries will take place on a free-on-board basis with volumes priced at a Henry Hub index plus a fixed fee and are scheduled to begin in 2031 while continuing through the end of 2054. One million tonnes per annum from the Sabine Pass agreement remains subject to a positive final investment decision on the first phase of an expansion project at that site according to a joint announcement from the parties. The agreements mark QatarEnergy’s first long-term offtake arrangement for US liquefied natural gas.
In the statement QatarEnergy’s president and chief executive Saad Sherida Al-Kaabi described the transaction as an important milestone that would expand and diversify the company’s global portfolio while advancing its ability to meet changing market requirements. The additional volumes will complement existing supplies enhance the supply and trading portfolio and strengthen the ability to serve customers worldwide Al-Kaabi said. Cheniere Energy chairman president and chief executive Jack Fusco stated in a separate announcement that the multi-decade agreements with one of the world’s most important energy companies represent a major long-term commercial commitment and reinforce Cheniere’s position as the leader in US LNG.
Fusco added that Cheniere takes pride in its track record of operational excellence reliability and long-term customer focus which provided the foundation for this landmark commercial relationship with QatarEnergy. The company looks forward to reliably supplying QatarEnergy from both Sabine Pass and Corpus Christi into the second half of this century he noted. Cheniere Energy’s announcement highlighted that the group currently operates approximately 56 million tonnes per annum of liquefaction capacity across its two facilities with an additional 5 million tonnes per annum under construction.
The purchase agreements follow earlier reports that QatarEnergy was seeking US supplies to address production shortfalls after attacks damaged facilities at Ras Laffan. A Bloomberg report indicated the March incidents reduced output and prompted the declaration of force majeure while an earlier Reuters article from September detailed negotiations with several US producers including Cheniere for multi-year contracts extending to 2031. Industry assessments placed the damaged capacity at around 12.8 million tonnes per annum representing roughly 17 percent of Qatar’s total liquefaction capability according to Wood Mackenzie data referenced across multiple outlets.
International Energy Agency tracking shows that between 2025 and 2030 more than 330 billion cubic metres per year of new global LNG export capacity is set to come online from projects already under construction as of 2025. S&P Global analysis projects long-term LNG demand will rise from roughly 400 million tonnes in 2025 to about 750 million tonnes by 2050 with Asia driving much of the growth. The agreements reflect QatarEnergy’s continued confidence in the long-term role of LNG in the global energy mix as it works to develop a flexible diversified and competitive portfolio the company stated.
Cheniere’s release noted that the first phase of its Sabine Pass expansion would add over 6 million tonnes per annum inclusive of debottlenecking and that an engineering procurement and construction contract with Bechtel had been signed in May. The overall expansion targets peak production of up to 20 million tonnes per annum which would lift total capacity at Sabine Pass above 50 million tonnes per annum. QatarEnergy maintains a majority stake in the separate Golden Pass LNG export project in Texas which is in the process of starting operations according to market reports.
