The key facts
- QatarEnergy will purchase 2 million tonnes of LNG per year from each of Cheniere's two plants — Sabine Pass and Corpus Christi
- Deliveries: 2031–2054, FOB terms, price — Henry Hub plus a fixed fee
- 1 million tonnes per year under the Sabine Pass agreement depends on a positive FID for the first phase of the expansion project
Essence of the deal
QatarEnergy announced the signing of two long-term agreements with the American company Cheniere to purchase up to 4 million tonnes of liquefied natural gas annually. Supplies will come from the Sabine Pass plant in Louisiana and the Corpus Christi plant in Texas, located on the Gulf of Mexico coast. According to Cheniere, QatarEnergy will purchase 2 million tonnes per year at each facility.
Delivery terms
Deliveries are expected to begin in 2031 and continue until 2054 on FOB (free on board) terms — QatarEnergy takes responsibility for the cargoes at the loading ports. The price is linked to the American Henry Hub benchmark plus a fixed fee. Cheniere clarified that 1 million tonnes per year under the Sabine Pass agreement will depend on a positive final investment decision on the first phase of the planned expansion project.
Signatories and statements
The agreements were signed by Qatar's Minister of State for Energy Affairs, President and CEO of QatarEnergy Saad Sherida Al-Kaabi and Chairman, President and CEO of Cheniere Jack Fusco. Al-Kaabi called the deal an important milestone in the company's LNG strategy, noting that the purchase will expand and diversify the global portfolio and strengthen the ability to serve customers worldwide. Fusco said the agreements represent a major long-term commercial commitment and strengthen Cheniere's position in the American LNG industry.
Context
Cheniere operates the Sabine Pass and Corpus Christi plants with a combined production capacity of about 56 million tonnes per year, and is also developing the Sabine Pass expansion, which could bring the terminal's capacity to more than 50 million tonnes per year. The deal was concluded against the backdrop of escalating tensions in the Middle East and disruptions to energy supplies through the Strait of Hormuz — a strategic route through which Qatar, one of the world's leading LNG exporters, delivers gas to Asia and Europe. The purchase of American LNG, as expected, will give QatarEnergy additional supply options outside the Persian Gulf region and reduce dependence on shipments from that region.
