QatarEnergy has signed a 20-year Qatar LNG deal with Australian energy company Woodside, securing potential long-term supplies from the United States. Under the agreement, Woodside will provide up to three million tonnes of liquefied natural gas annually. The supplies will come from its Louisiana LNG project, which is under construction near Lake Charles.
Woodside announced the agreement on Thursday, October 29, as it works to develop the export facility. The project expects to begin production in 2029, adding new capacity to the American liquefied natural gas industry. Its first phase will include three production units, known as trains, with a combined annual capacity of 16.5 million tonnes.
However, QatarEnergy will not receive the full contracted volume immediately when production begins. Deliveries will start once the project’s second train becomes operational. Subsequently, supplies will increase to three million tonnes annually after the third train starts production.
The companies agreed to use free-on-board terms for the LNG deliveries. Under this arrangement, Woodside will load the gas onto vessels at the export terminal. QatarEnergy will then take responsibility for arranging and managing transportation from the facility.
This structure separates production and loading responsibilities from the shipping arrangements. Consequently, QatarEnergy will need to coordinate vessel movements and logistics for the contracted cargoes. The agreement also gives Woodside a long-term customer as it advances development of the Louisiana facility.
Woodside Chief Executive Officer and Managing Director Liz Westcott described the deal as an important step towards securing customers for the project. She highlighted the partnership with QatarEnergy, which ranks among the major participants in the global energy industry.
The 20-year commitment provides a long-term framework for both companies as they plan future operations. Nevertheless, actual delivery volumes will depend on the project’s construction progress and the scheduled start-up of its production units.
The new Qatar LNG deal follows two supply agreements QatarEnergy signed with US producer Cheniere on October 22. Those contracts cover purchases of up to four million tonnes of LNG annually. They involve supplies from Cheniere’s Sabine Pass facility in Louisiana and Corpus Christi facility in Texas.
Deliveries under the Cheniere agreements are expected to begin in 2031 and continue through 2054. Together, the contracts broaden QatarEnergy’s long-term purchasing arrangements with American LNG producers. Meanwhile, the Woodside agreement introduces another source expected to begin supplying cargoes earlier.
The different start dates could help QatarEnergy structure its future supply portfolio across several production projects. However, the timing and scale of deliveries will depend on each facility’s development and operational readiness.
Louisiana Project Adds Future Export Capacity
Woodside’s Louisiana LNG development represents a major infrastructure project designed to supply international gas markets. Its planned first phase will deliver a combined annual production capacity of 16.5 million tonnes across three trains. QatarEnergy’s contracted volumes will ramp up as the later units enter service.
The agreement links QatarEnergy’s long-term procurement plans with new American export capacity. Furthermore, it gives Woodside a significant customer commitment as construction continues. Both companies will now look towards project milestones that determine when deliveries can begin and reach the agreed annual level.
The deal adds another long-term commercial relationship to QatarEnergy’s supply portfolio. As the Louisiana project progresses towards its expected 2029 start, market participants will monitor construction, commissioning and the timing of initial cargoes.
