Qatar, once one of the world's largest liquefied natural gas (LNG) exporters, has signed a long-term deal to buy gas from its main competitor, the United States, as the Iran war disrupts its production and exports.
QatarEnergy signed the agreement with US LNG exporter Cheniere Energy on October 22 to purchase 4 million tonnes of LNG annually until 2054. Deliveries are expected to begin in the 2030s, with prices linked to the US Henry Hub benchmark plus a fixed fee.
The deal comes after Iranian strikes damaged two production trains at Qatar's Ras Laffan facility, cutting around 17 percent of the country's LNG export capacity. Qatar's energy minister, Saad Sherida Al-Kaabi, said repairs could take about three years.
Qatar has also struggled to export LNG through the Strait of Hormuz amid security concerns and attacks on tankers.
Analysts say the agreement reflects Qatar's efforts to secure supplies and meet international commitments despite disruptions. It also highlights the growing influence of US LNG exporters in global energy markets.
QatarEnergy recently secured $3 billion in loans from Chinese banks, which could help finance additional US LNG purchases, according to UBS analysts.
Source: CNBC
-AJM