QatarEnergy to Buy 4 Million Tons of U.S. Gas Annually Through 2054
Key Facts
Two Cheniere subsidiaries have signed long-term sale and purchase agreements to supply 4 million metric tons of liquefied natural gas annually to QatarEnergy through the end of 2054. QatarEnergy said deliveries are expected to begin in 2031, making the supply part of its future portfolio rather than a source starting immediately. The company will buy 2 million tons annually from each of Sabine Pass in Louisiana and Corpus Christi in Texas, according to a Cheniere statement. QatarEnergy said the additional volumes "will complement its existing LNG supplies" and that the agreements expand and diversify its global portfolio. The published terms confirm that the volumes are split equally between the two facilities, while part of the Sabine Pass supply remains linked to an investment decision on the expansion.
The purchase price is based on the Henry Hub benchmark plus a fixed fee, while cargoes will be delivered free on board, according to a Cheniere statement. The statement did not specify the fixed fee, so the announced price does not include a final numerical level. Linking the price to the U.S. benchmark provides a pricing mechanism based on Henry Hub, with a fixed component added under the agreement. Deliveries are expected to run from 2031 through 2054, according to QatarEnergy and Cheniere, covering a long-term period. Cheniere Chief Executive Jack Fusco said the agreements "strengthen Cheniere's position in the U.S. LNG market," adding that the company's track record of operational excellence, reliability and long-term customer focus had laid the foundation for the commercial relationship.
However, 1 million tons annually under the Sabine Pass agreement, or a quarter of the total contracted volume, is conditional on a positive final investment decision for the first phase of the facility's expansion. The phase includes Train 7, a boil-off gas reliquefaction unit and supporting facilities, with expected capacity exceeding 6 million tons annually by the early 2030s. Cheniere said it expects to make the final investment decision on the first phase by early 2027. The decision remains subject to the necessary regulatory approvals and acceptable financing arrangements, according to the company's announcement of the expansion on June 10, 2026. The delivery of this portion of the supply therefore depends on the project clearing its investment, regulatory and financing stages before the expected start of deliveries.
The agreements come as global LNG trade expands and the U.S. share increases. Global trade rose 5.4% in 2025 to a record 56.3 billion cubic feet per day, according to the U.S. Energy Information Administration. In the same year, U.S. exports rose 26% to 15.1 billion cubic feet per day, accounting for 26% of the global total, compared with 21% in 2024. Cheniere's two operating facilities at Sabine Pass and Corpus Christi have capacity of about 56 million tons annually, with about 5 million additional tons expected to be under construction, according to the company. These figures reflect the expanding U.S. supply base underpinning QatarEnergy's agreement in a market that recorded record trade growth in 2025.
For Corpus Christi supply, the U.S. Department of Energy on February 26, 2026, authorized a 12% increase in the facility's exports, adding up to 0.47 billion cubic feet per day. The approval raised the project's total authorized exports to 4.45 billion cubic feet per day, according to the department. The Energy Information Administration forecast U.S. LNG exports of 17.4 billion cubic feet per day in 2026, followed by 18.6 billion in 2027. On supply security, the administration said about 20% of global LNG trade passed through the Strait of Hormuz in 2024, and Qatar exported about 9.3 billion cubic feet per day through it. The International Monetary Fund said in October 2026 that the near-closure of the strait and disruption in the Red Sea sharply reduced oil and gas exports, and that damage to energy facilities lowered production capacity.