Key facts
- QatarEnergy is seeking multi-year U.S. LNG contracts through 2031.
- The company aims to replace capacity lost after Iranian strikes in March.
- Two of Qatar's 14 LNG trains and a GTL facility were damaged.
- Repairs are expected to take three to five years, impacting 12.8 million tons per year of capacity.
- QatarEnergy has extended force majeure notices to November.
- The trading arm is seeking 2-3 million metric tons per annum.
QatarEnergy is in talks with several U.S. liquefied natural gas (LNG) producers to secure contracts until 2031, according to three trading and industry sources. The move is intended to compensate for production capacity lost after Iranian strikes in March damaged two of the company's 14 LNG trains and a gas-to-liquids facility at its Ras Laffan complex. The repairs are estimated to take three to five years and will sideline approximately 12.8 million tons per year of LNG capacity. QatarEnergy has been issuing force majeure notices monthly since March, most recently extending them to November, citing the ongoing closure of the Strait of Hormuz. The company's trading arm is reportedly seeking between 2 and 3 million metric tons per annum of LNG through to 2031. This shift from spot cargo purchases indicates a search for longer-term solutions to meet commitments, particularly to Asian clients who typically receive about 80% of Qatar's LNG exports. Market participants are reportedly stress-testing scenarios where Qatari gas is unavailable.