Doha:QatarEnergy has announced the signing of two significant long-term agreements with the US energy company Cheniere. These agreements will enable QatarEnergy to purchase up to 4 million tons of liquefied natural gas (LNG) annually from Cheniere's facilities located in Louisiana and Texas until the year 2054.

According to Anadolu Agency – English, the deals involve LNG supplies from Cheniere's Sabine Pass facility in Louisiana and the Corpus Christi facility in Texas, both situated along the US Gulf Coast. The deliveries are set to commence in 2031 and will continue through 2054, with QatarEnergy taking responsibility for LNG shipments at the loading ports under a free-on-board (FOB) arrangement.

Cheniere's statement revealed that QatarEnergy would procure 2 million tons annually from each facility. The pricing will be indexed to the US Henry Hub natural gas benchmark, along with a fixed fee. Notably, 1 million tons annually under the Sabine Pass agreement will depend on a positive final investment decision regarding the first phase of Cheniere's planned expansion project.

The agreements were formalized by Qatar's Minister of State for Energy Affairs and QatarEnergy President and CEO Saad Sherida Al-Kaabi, alongside Cheniere Chairman, President, and CEO Jack Fusco. Al-Kaabi emphasized these agreements as a crucial step in advancing QatarEnergy's LNG strategy and its global trading portfolio. Fusco highlighted the agreements as reinforcing Cheniere's position within the US LNG industry.

This strategic move comes as QatarEnergy seeks to enhance its global LNG supply and trading portfolio while solidifying its position in the international energy markets. The purchase of US-produced LNG is anticipated to offer QatarEnergy alternative supply routes, reducing its reliance on shipments through the Gulf, especially amid heightened tensions and disruptions in the Middle East.