QatarEnergy is in advanced talks with Venture Global on a long-term deal to buy at least 3 million metric tons a year of liquefied natural gas, Reuters reported on Thursday, citing three people familiar with the negotiations.
The state-owned Qatari producer is already buying LNG from the US exporter on the spot market to supply some of its customers, according to the report.
Those purchases are a response to the continued blockage of the Strait of Hormuz, which has sharply cut shipping traffic this year.
Reuters said it could not immediately learn the timing of a possible agreement or how long a contract would run. Neither QatarEnergy nor Venture Global immediately responded to requests for comment, Reuters said.
Venture Global has the largest uncommitted LNG capacity among US suppliers. It could become the second-largest US exporter once its CP2 plant, under construction in Louisiana, starts production, according to the report.
A deal would be QatarEnergy’s second major long-term supply contract with a US exporter this year.
On Thursday, Cheniere Energy, the largest US LNG exporter, agreed to supply QatarEnergy with up to 4 million tons a year from 2031 through 2054.
Half of the Cheniere volumes will come from its Sabine Pass plant in Louisiana and half from its Corpus Christi terminal in Texas.
