QatarEnergy agrees to buy US LNG as Gulf producers hunts for deals
The energy major is securing gas supplies beyond the region amid constrained domestic exports. QatarEnergy agreed to buy up to 4 million tons a year of US LNG from Houston-based Cheniere, the latest deal to further the company’s aim to become the world’s largest gas trader. State-owned energy producers in the Gulf have been on a deal spree this year, securing gas supplies far beyond the region to help them serve customers even when domestic exports are constrained. These investments matter more than ever now, after the US-Iran war disrupted flows through the Strait of Hormuz. Qatar’s exports fell almost 90% year-on-year from April to September, although they have reportedly recovered after Doha adopted the “Hormuz shuttle” for LNG cargoes this month. Access to supplies outside of the region has also allowed Gulf producers to benefit from higher prices. QatarEnergy’s 70%-owned Golden Pass plant in Texas shipped its first cargo in April. Saudi Aramco has agreed to buy gas from Port Arthur LNG nearby, and ADNOC’s international investment arm XRG has bought into projects in Argentina, Mozambique, and the US.
The energy major is securing gas supplies beyond the region amid constrained domestic exports. QatarEnergy agreed to buy up to 4 million tons a year of US LNG from Houston-based Cheniere, the latest deal to further the company’s aim to become the world’s largest gas trader. State-owned energy producers in the Gulf have been on a deal spree this year, securing gas supplies far beyond the region to help them serve customers even when domestic exports are constrained. These investments matter more than ever now, after the US-Iran war disrupted flows through the Strait of Hormuz.
Qatar’s exports fell almost 90% year-on-year from April to September, although they have reportedly recovered after Doha adopted the “Hormuz shuttle” for LNG cargoes this month. Access to supplies outside of the region has also allowed Gulf producers to benefit from higher prices. QatarEnergy’s 70%-owned Golden Pass plant in Texas shipped its first cargo in April. Saudi Aramco has agreed to buy gas from Port Arthur LNG nearby, and ADNOC’s international investment arm XRG has bought into projects in Argentina, Mozambique, and the US.