Qatar signs its first U.S. LNG deal with Cheniere, running through 2054

HOUSTON — QatarEnergy has agreed to buy 4 million metric tons a year of liquefied natural gas from Houston-based Cheniere Energy through 2054, its first long-term purchase agreement with a U.S. supplier.

The gas will come from Cheniere’s Sabine Pass terminal in Louisiana and its Corpus Christi terminal in Texas, with each supplying 2 million tons a year. Shipments are set to begin in the early 2030s and will be priced off the Henry Hub benchmark plus a fixed fee. One million tons a year of the Sabine Pass volume depends on Cheniere approving an expansion.

The deal gives Qatar a supply route that avoids the Strait of Hormuz. Iranian missile strikes in March damaged two of the 14 production trains at Qatar’s Ras Laffan complex, and QatarEnergy’s exports from April to September fell almost 90% from a year earlier, according to reports on the agreement. The company’s chief executive has estimated repairs could take three to five years.

QatarEnergy also holds a majority stake in the Golden Pass LNG export plant in Texas, which is now starting up.