QatarEnergy has signed a 20-year contract with Woodside Energy of Australia to purchase up to three million tons of liquefied natural gas (LNG) annually from the company's project in the United States. This agreement has recently been announced and includes the supply of LNG from Woodside's project in Louisiana, which is under construction near Lake Charles.
Contract Details and Production Timeline
According to this agreement, LNG production from Woodside's project will begin in 2029. The first phase of this project includes three production units, known as "trains," with a combined annual capacity of 16.5 million tons of LNG. Under the agreement, deliveries to QatarEnergy will commence when the second train of the project becomes operational, and will then increase to three million tons annually with the start of production from the third train.
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The LNG supply will be delivered on a Free On Board (FOB) basis, meaning that Woodside will be responsible for loading the LNG onto ships at the export terminal, while QatarEnergy will take responsibility for transporting it from there.
Significance and Implications of the Agreement
Liz Westcott, CEO of Woodside, described this agreement as a significant step towards securing long-term customers for the Louisiana project. She stated, "This historic agreement brings together the competitive LNG project in the United States and QatarEnergy, one of the world's leading energy companies."
This agreement comes after QatarEnergy signed two long-term contracts with Cheniere Energy on October 22, which include the purchase of up to four million tons of LNG annually. These contracts involve the supply of LNG from Cheniere's Sabine Pass facilities in Louisiana and the Corpus Christi facilities in Texas. Deliveries are expected to begin in 2031 and continue until 2054.
Overall, these agreements add to QatarEnergy's long-term LNG supply arrangements with American producers, and the Woodside contract is set to provide supply from a project expected to commence production in 2029.
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