QatarEnergy is in talks with Woodside Energy to buy up to 3 million metric tons a year of liquefied natural gas from the Australian company’s Louisiana LNG plant, which is under construction, three people with knowledge of the negotiations told Reuters on Friday.
If the two sides reach a final agreement, QatarEnergy could buy LNG from the 16.5 million tons a year export facility for 15 to 20 years, one of the people said.
Woodside said on Friday that it does not respond to market speculation. QatarEnergy did not immediately respond to a request for comment, Reuters said.
The talks are the latest in a series of moves by the state-owned Qatari producer to secure US supply. QatarEnergy has been buying LNG on the spot market from US exporters to supply some of its customers because shipping through the Strait of Hormuz remains blocked.
The US-Israeli war on Iran and Tehran’s strikes this year have sharply curtailed traffic through the strait, the route for Qatar’s LNG exports from Ras Laffan.
On Thursday, Cheniere Energy said it had reached a long-term agreement to supply QatarEnergy with 4 million tons a year of LNG. Half of that volume will come from Cheniere’s Sabine Pass facility in Louisiana and half from its Corpus Christi terminal in Texas.
Reuters also reported on Thursday that QatarEnergy is in advanced talks with Venture Global on a long-term deal to buy at least 3 million tons a year.
Venture Global and Woodside’s Louisiana LNG are the US suppliers with the most uncommitted LNG capacity, according to Reuters.
Louisiana LNG is asking for liquefaction fees above $2.50 per million British thermal units, a premium to average US market prices, in return for contract flexibility, two people told Reuters. The plant is offering potential buyers shorter contracts at higher prices, they said.
QatarEnergy also owns 70% of the Golden Pass LNG project being developed in Louisiana, which will be able to export up to 18 million tons a year once complete.
