QatarEnergy Signs Two Agreements to Buy Up to 4 Million Tons a Year of US Gas Through 2054
QatarEnergy has signed two long-term agreements with Cheniere to purchase up to 4 million tons per annum of US LNG, with deliveries set to begin in 2031.
QatarEnergy has signed two long-term agreements with US company Cheniere to purchase up to 4 million tons per annum of liquefied natural gas, according to the Qatar News Agency.
The gas will be supplied from the Sabine Pass and Corpus Christi facilities in the United States on a free-on-board (FOB) basis, with deliveries starting in 2031 and continuing through 2054.
The two agreements were signed by Qatar's Minister of State for Energy Affairs Saad Al-Kaabi and Cheniere CEO Jack Fusco, according to the agency.
The deal strengthens Qatar's presence in global LNG trading through diversifying supply sources, while granting Cheniere long-term contracts supporting the operation of its export capacity in the US market.
What do these terms mean?
Liquefied Natural Gas (LNG): Gas cooled to around 162 degrees Celsius below zero to turn into a liquid, making it easier to transport in specialized ships.
Free on Board (FOB): An agreement under which the buyer bears the cost of transporting and insuring the cargo after it is loaded at the seller's port.
Million tons per annum: A common unit of measurement in LNG contracts, referring to the quantity of gas delivered over a full year.
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