QatarEnergy to Buy Up to 3 Million Tonnes of LNG a Year for 20 Years
Key Facts
Woodside Energy has signed a long-term sale and purchase agreement with QatarEnergy to supply up to 3 million tonnes of liquefied natural gas a year for 20 years from its Louisiana LNG project, according to details of the agreement disclosed by the company. The contract turns QatarEnergy’s efforts to secure U.S. supplies into a long-term commitment with an additional supplier. Under its terms, shipments will begin on a free-on-board basis when the project’s second train starts up. Volumes will rise to 3 million tonnes a year when the third train starts up. The agreement comes days after QatarEnergy announced a separate deal with Cheniere to supply 4 million tonnes a year.
The agreement ties the start of supply to the commissioning of liquefaction units in Louisiana, rather than setting a calendar date for deliveries to begin. Woodside is targeting first LNG production from the project in 2029, according to its 2025 annual report. The approved foundation phase consists of three trains with combined capacity of 16.5 million tonnes a year. This means QatarEnergy’s volume at full supply levels will account for part of the planned capacity of the first phase, with volumes starting before the third train is fully operational. The project’s total permitted capacity is 27.6 million tonnes a year, including capacity beyond the foundation phase.
The foundation phase reached a final investment decision in April 2025, and Woodside says the project is under construction in Calcasieu Parish, Louisiana. The deal places QatarEnergy among the buyers linked to U.S. export projects, as the company expands its long-term contracts with suppliers in the United States. On Oct. 22, QatarEnergy announced two agreements with Cheniere to supply a total of 4 million tonnes a year, with deliveries due to begin in the early 2030s and continue through the end of 2054. The price of those shipments is linked to the Henry Hub benchmark plus fixed fees, according to Cheniere’s announcement. The Woodside deal is a separate contractual route, with its volume tied to the start-up of trains at the Louisiana project.
The contract followed reports that QatarEnergy was seeking to secure U.S. supplies for several years. In September, Reuters reported that the company had held talks with several producers for contracts through 2031 to offset capacity damaged at its Ras Laffan facilities. Chief Executive Saad al-Kaabi said in March that repairs would keep 12.8 million tonnes a year of LNG capacity offline for between 3 and 5 years. On Oct. 25, a Reuters report said QatarEnergy had bought spot cargoes from U.S. suppliers to serve some of its customers amid disruption to shipping through the Strait of Hormuz. These developments show a mix of supply tools, from spot purchases to multiyear contracts, without establishing that the shipping disruption prompted the Woodside agreement.
QatarEnergy also owns a 70% stake in the Golden Pass facility under development in Louisiana, which is targeting exports of up to 18 million tonnes a year when complete, according to an earlier Reuters report. For existing supplies, Reuters reported in September that force majeure notices to some Asian customers had been extended through November, while gas deliveries to Italian company Edison remained halted until early December. These commitments and projects reflect QatarEnergy’s growing presence in the U.S. LNG supply chain, alongside its domestic production. According to an EL7 report published on Oct. 23, the company had negotiated to buy 3 million tonnes a year from Venture Global; Woodside then announced its long-term agreement in a separate deal. The next steps under the Woodside contract remain tied to completion of the second train and then start-up of the third, while the project is targeting first production in 2029.