QatarEnergy in Talks to Buy 3 Million Tons per Year of LNG from Woodside's US Project

en.Wedoany.com Reported - On October 23, QatarEnergy is in negotiations with Australia's Woodside Energy for a long-term purchase agreement for a liquefied natural gas project in Louisiana, USA, planning to purchase up to 3 million tons of LNG per year, with a potential contract term of 15 to 20 years. The project's base phase is planned to have an annual capacity of 16.5 million tons and is currently under construction. The purchase volume under discussion is equivalent to approximately 18% of the base phase's designed capacity.

Woodside's Louisiana LNG project is located in Calcasieu Parish, Louisiana, USA. The base phase includes three liquefaction trains, received a final investment decision in April 2025, and is scheduled to achieve first LNG production in 2029. The project has a total permitted liquefaction capacity of 27.6 million tons per year, with Bechtel responsible for engineering, procurement, and construction. Woodside is seeking long-term LNG offtakers for the project. According to sources involved in the negotiations, the project's proposed liquefaction processing fee exceeds US$2.50 per million British thermal units, with pricing quoted based on contract term and flexibility of terms.

QatarEnergy has been continuously expanding its US LNG purchases. On October 22, US-based Cheniere Energy reached two long-term purchase and sale agreements with QatarEnergy, totaling 4 million tons of LNG per year, with 2 million tons each from the Sabine Pass project in Louisiana and the Corpus Christi project in Texas. Deliveries are planned to begin in 2031, with contract terms extending through the end of 2054. QatarEnergy is also in negotiations with US-based Venture Global for a long-term supply agreement of at least 3 million tons of LNG per year.

QatarEnergy has already purchased LNG through the US spot market this year to fulfill some customer supply contracts. Previously, Qatar's Ras Laffan LNG facility was attacked, damaging some production capacity, and shipping through the Strait of Hormuz continues to be disrupted. The company is in discussions with multiple US exporters for medium- and long-term gas supply arrangements, covering both existing operating facilities and LNG projects under construction.