On Saturday, The Center Square posted an article about two deals in a week made by QatarEnergy with Australia-based Woodside Energy.
The article reports:
State-owned QatarEnergy, the world’s biggest liquefied natural gas exporter, announced Thursday its second multi-decade deal within a week with a competitor on the U.S. Gulf Coast, as the company’s own Ras Laffan export plant on the Persian Gulf remains offline following Iranian missile strikes.
The Qatari energy giant signed an agreement Thursday to buy up to 3 million metric tons of LNG annually for 20 years from Australia-based Woodside Energy, whose Louisiana LNG export plant is now under construction in Calcasieu Parish near Lake Charles. The plant’s first production is targeted for 2029, with deliveries to QatarEnergy expected to begin in 2030.
The article notes:
“We are pleased to further enhance our global supply and trading portfolio with another long-term purchase of LNG from the U.S.,” Al-Kaabi said in a statement Thursday. “These additional volumes make QatarEnergy the largest buyer of LNG from the U.S. and place us in a stronger position to meet the global growing needs for LNG.”
Two damaged production units at QatarEnergy’s Ras Laffan LNG export facility, with a combined annual capacity of 12.8 million metric tons, require repairs expected to take three to five years. QatarEnergy estimated the damage would cost about $20 billion in annual lost revenue. The company’s remaining plants have an annual export capacity of 64.2 million metric tons. The Strait of Hormuz is mostly closed to vessel traffic, however, and QatarEnergy is unable to ship LNG to its customers in Asia and Europe.
I am not a big fan of Qatar–I believe they play both sides of the war on terror. However, there will be new alliances formed as a result of Iran’s missile attacks on other Gulf nations. I believe that Iran has unintentionally isolated itself from the countries around it and created the circumstances that will eventually result in a change of leadership.