QatarEnergy will purchase American LNG over a 20-year period

Woodside Energy will supply QatarEnergy with US-produced liquefied natural gas over 20 years. Under the agreement, the Qatari company will gain an additional source outside the Persian Gulf during a period when shipments through the Strait of Hormuz have been disrupted.

The gas will come from Woodside's Louisiana project. Deliveries will increase in stages and reach 3 million tons per year once the third production line is operational. The first cargoes are expected in 2030. According to QatarEnergy, the agreement will make the company the largest buyer of US LNG.

The deal is also significant for Woodside. The company needed to secure long-term customers for its $17.5 billion Louisiana LNG project. The facility will have an annual capacity of 16.5 million tons, with first production planned for 2029.

Source: Reuters