This price and market structure story centres on QatarEnergy's shift from spot purchases to talks on multi year United States LNG contracts through 2031. Reuters reported that discussions include Venture Global, Cheniere and Woodside as QatarEnergy tries to protect deliveries to customers in Asia.
QatarEnergy Trading is seeking 2 million to 3 million metric tons a year through 2031, according to one of the sources cited by Reuters. The trading arm manages about 10 million tons of the company's LNG portfolio.
The talks follow damage in March to two of the 14 LNG trains at Ras Laffan and to a gas to liquids facility. QatarEnergy has renewed force majeure notices each month, most recently through November, while the damaged capacity remains unavailable.
United States projects under construction have 25 million metric tons a year of uncontracted LNG capacity, based on Rapidan Energy data cited by Reuters. Venture Global accounts for 10 million tons, Cheniere and Woodside each have 6 million tons, and Sempra's Port Arthur LNG project has 3 million tons.
A multi year purchase by one of the world's largest LNG exporters would add competition for flexible United States volumes. Buyers, terminal operators and carriers would need to plan around longer Atlantic supply chains rather than treat the shortfall as a temporary spot market problem.