Qatar, where LNG shipments have nearly completely halted because of transit risks in the Strait of Hormuz, is considering long-term purchase agreements with US suppliers to make up for the loss of supply capacity to its customers.
The talks cover potential supplies from LNG export projects operating in the United States and projects still under construction. No final agreement has been reached between Qatar and US suppliers, but the search marks the first sign since the war began that Qatar is seeking to shift its LNG portfolio outside the Middle East and provide its customers with alternative sources.
Strait of Hormuz risks halt shipments
Qatar previously supplied about one-fifth of global LNG. However, risks surrounding the passage of gas tankers through the Strait of Hormuz have led to an almost complete halt in the country's LNG shipments.
State-owned QatarEnergy did not respond to questions about potential LNG supplies from the United States.
Ras Laffan damaged in Iranian attack
Before the fighting began at the end of February, Qatar was advancing plans to nearly double production at the Ras Laffan LNG export complex by 2030. Described as the world's largest LNG facility, the complex was damaged in an Iranian attack during the first weeks of the war.
Repairs at Ras Laffan could take three to five years. Uncertainty over when the war will end is pushing Qatar to strengthen its LNG trading operations and seek supplies from outside the Gulf.
Qatar's access to US LNG
Qatar already has access to certain volumes of US LNG through its stake in the Golden Pass LNG terminal in Texas. The terminal began exports in April and is gradually increasing production.
QatarEnergy Trading, the trading arm of QatarEnergy, has expanded its capacity to market and ship LNG produced in the United States. The company conducts these activities mainly through short-term transactions.
