Top LNG exporter QatarEnergy in talks to buy US LNG from Woodside's Louisiana plant

Cheniere Energy

Today 19:01

Long-term deal could cover up to 3 million metric tons a year for 15 to 20 years, one source says
QatarEnergy has also reached 4 mtpa long-term supply deal with Cheniere
Woodside's Louisiana LNG plant has 16.5 mtpa export capacity under construction
By Curtis Williams and Marwa Rashad
HOUSTON, Oct 23 (Reuters) - QatarEnergy is in talks with Woodside Energy WDS.AX to buy up to 3 million metric tons of liquefied natural gas per annum (mtpa) from its Louisiana LNG plant under construction, three people with knowledge of the negotiations told Reuters.
If a final agreement is reached, the long-term deal could see QatarEnergy buying LNG from the 16.5 mtpa export facility for between 15 and 20 years, one of the people said.
Woodside Energy said on Friday it does not respond to market speculation, while QatarEnergy did not immediately respond to a request for comment.
QatarEnergy has been buying LNG on the spot market from US exporters to supply some of its customers due to the ongoing blockage of the Strait of Hormuz as the US-Israeli war on Iran and Tehran’s strikes this year have sharply curtailed shipping.
The company is also a 70% owner of the Golden Pass LNG facility being developed in Louisiana, which when complete will have the capacity to export up to 18 mtpa of LNG.
On Thursday, Cheniere Energy LNG.N reported it had reached a long-term agreement to supply QatarEnergy with 4 mtpa of LNG. Two million metric tons per year will be sourced from Cheniere’s Sabine Pass facility in Louisiana, and another 2 mpta will come from its Corpus Christi terminal in Texas.
Reuters also reported on Thursday that QatarEnergy is in advanced talks with Venture Global VG.N for a long-term supply deal to buy at least 3 million metric tons of LNG per year.
Venture Global and Woodside's Louisiana LNG are the US suppliers with the most uncommitted LNG capacity.
Louisiana LNG is said to be asking for a premium for liquefaction fees that exceed $2.50 per mmBtu and are above the average US market prices because of contract flexibility, offering potential buyers shorter contracts in return for higher prices, two people told Reuters.

 (Reporting by Curtis Williams in Houston, with additional reporting by Emily Chow; Editing by Nathan Crooks and Nia Williams)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))