Qatar Leans on U.S. for LNG Supplies

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Qatar has reached out to leading U.S. exporters of LNG for supplies. Qatar's own LNG infrastructure was heavily damaged during the conflict still simmering in the Middle East.

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Qatar Needs a Lift after Drone Attacks

With its export potential hobbled by damage from drone strikes during the conflict in the Middle East, Qatar is leaning on the U.S. for additional supplies of liquefied natural gas (LNG), agreements show.

The U.S. is the world leader in exports of LNG, supported by its vast natural gas reserves. On Thursday, Reuters reported that QatarEnergy was in advanced talks to secure at least 3 million metric tons of gas per year from Venture Global.

Venture Global is behind several U.S.-based LNG projects. Its Plaquemines facility is the largest by export volume, according to Industrial Info Resources data. Situated along the Gulf Coast of Louisiana, Plaquemines has an industrial design capacity of 13.5 million metric tons per annum (MTPA).

Industrial Info Resources offers more information on the Plaquemines facility in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and a detailed list of project reports.

For Qatar, it's a source of diversity. By March, Industrial Info Resources was reporting that drone damage to the Ras Laffan North and Ras Laffan South facilities led to a US$26 billion repair bill.

Subscribers can learn more from detailed profiles of Ras Laffan North and Ras Laffan South.

Elsewhere, Cheniere Energy on Thursday confirmed that QatarEnergy secured long-term deals to take 4 MTPA combined from the Sabine Pass and Corpus Christi liquefaction terminals on the U.S. Gulf Coast. Both facilities combine for an industrial capacity of 43.5 MTPA, with the bulk of the volume coming from Sabine Pass, according to Industrial Info Resources data.

Subscribers can learn more from detailed profiles of Sabine Pass and Corpus Christi.

Deliveries would begin in the early 2030s and continue through the end of 2054.

By the Numbers

• 7 MPTA booked by Qatar for U.S. LNG
• 13% year-on-year increase in feed gas supporting U.S. exports

U.S. Leads the World in LNG Exports

"These pivotal, multi-decade agreements with QatarEnergy, one of the world's most important energy companies and a cornerstone of the global LNG industry, represent a major long-term commercial commitment and reinforce Cheniere's position as the leader in U.S. LNG," said Jack Fusco, the top executive at Cheniere.

For the U.S., the amount of feed gas running to operational terminals continues for conversion to LNG remains at near-record highs. Industrial Info Resources data show feed gas running at about 19 billion cubic feet per day over the week ending October 23.

Data for October 23 show the nine operational export terminals are running at about 90% of their peak capacity, but more than 13% higher than levels during the same time last year. For Qatar, the company's top executive said the deal would add diversity to its LNG portfolio.

"The additional volumes will complement QatarEnergy's existing LNG supplies, enhance our supply and trading portfolio, and strengthen our ability to serve customers across the globe," said Saad Sherida Al-Kaabi, the company's president and chief executive officer.

QatarEnergy was forced to tell its European clients earlier this year that deliveries of LNG would be delayed until at least November. Meanwhile, three vessels were targeted while traversing the Strait of Hormuz last week, showcasing the ongoing tensions in the region.

Key Takeaways

• Qatar's LNG infrastructure was damaged during the ongoing war
• U.S. supplies offer Qatar, a major player in its own right, a bit of diversity

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).