QatarEnergy Reportedly Seeking Multi-Year US LNG Deals to Cover Production Gap

QatarEnergy is negotiating multi-year liquefied natural gas (LNG) supply contracts with several U.S. producers for deliveries through 2031, according to industry sources. The move aims to replace significant production capacity lost after its key Ras Laffan facility was damaged by Iranian attacks in March.

Securing Long-Term U.S. Volumes

According to three trading and industry sources cited by Reuters, discussions are underway with producers including Venture Global, Cheniere, and Woodside. QatarEnergy's trading arm is reportedly seeking 2-3 million metric tons per annum (MTPA) to help cover its long-term supply commitments.

This represents a strategic pivot from the company's recent reliance on purchasing dozens of spot U.S. LNG cargoes. The shift to multi-year contracts indicates a search for a more stable, long-term solution to its supply shortfall. Venture Global and Cheniere declined to comment on the matter, while Woodside stated it does not comment on market speculation, according to the report.

Covering a Major Production Shortfall

The negotiations follow Iranian strikes in March that damaged two of QatarEnergy's 14 LNG production units, known as trains, and a gas-to-liquids (GTL) plant. QatarEnergy CEO Saad al-Kaabi stated in March that the repairs would sideline 12.8 million tons per year of LNG capacity for an estimated three to five years.

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Compounding the production issues, the company has renewed its force majeure notices monthly since March, recently extending them to November. Sources cited the continued closure of the critical Strait of Hormuz shipping lane as an ongoing challenge.

Implications for Global LNG Markets

The pursuit of long-term deals from external producers suggests Qatar anticipates a prolonged disruption to its own export capabilities. This move could tighten the global LNG market as one of its largest players turns from a seller into a significant buyer.

"Qatar’s current pursuit of long-term LNG volumes from other producers... indicates that Qatar now sees risk to their ability to export LNG for several years," said Saul Kavonic, head of energy research and advisory at MST Marquee, in comments to Reuters. With roughly 80% of Qatar's LNG shipments historically destined for Asia, many of its clients have reportedly begun seeking alternative supply sources amid the uncertainty.