QatarEnergy Signs 20-Year LNG Purchase Deal With Woodside for Louisiana Output

what happened

QatarEnergy has agreed to buy up to 3 million metric tons of LNG each year from Woodside Energy's export project under construction in Louisiana, according to Dow Jones Newswires, which cited the Australian producer's Thursday announcement. The contract runs for 20 years.

Dow Jones notes that the Qatari state company has lost a large share of its output after Iran's attacks on Ras Laffan, which took about 17% of its export capacity offline. Seeking Alpha, citing Reuters, reports that deliveries will start from the second train and reach full volume once the third train launches. First LNG from the 16.5 million ton plant is targeted for 2029, while deliveries under the deal are expected to begin in 2030.

why it matters

Woodside has struggled to sell volumes from the Louisiana project, which has few committed buyers, after seeking liquefaction fees above U.S. market rates. A contract of this length gives the project a steady buyer and can strengthen its commercial case. For global gas markets, the agreement suggests Qatar is preparing for prolonged disruption in the Gulf.

market impact

Woodside and US LNG: long-term demand for Louisiana gas supports the project

• ▲Woodside Energy shares pressure up — a 20-year offtake contract lowers the risk of unsold capacity at its Louisiana plant

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