QatarEnergy Buys 3 Million tpy From Woodside's Louisiana LNG

QatarEnergy has signed a 20-year contract to buy up to 3 million tonnes/year (tpy) of LNG from Woodside Energy's Louisiana LNG export project, with deliveries on an FOB basis (free on board — buyer takes custody at the loading terminal and controls shipping) expected to start in 2030.

The deal follows QatarEnergy's recently signed purchase agreements with Cheniere. Together, the purchases expand a US offtake portfolio that the Qatari state company is building while it also expands its own export capacity at home. The company frames this as supply diversification. Fair reading: it is also a hedge against demand that Qatari volumes alone may not satisfy.

His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and president and chief executive officer of QatarEnergy, said the additional volumes make QatarEnergy "the largest buyer of LNG from the US" and strengthen its ability to meet growing global LNG demand.

That is a claim worth stress-testing. The statement came without published figures on total US volumes now contracted. QatarEnergy did not say how the ranking is calculated. The company did not disclose pricing terms either — indexation, slope, or destination flexibility — so the commercial substance of the deal stays under wraps.

What does Woodside get?

Revenue certainty and a marquee offtaker. Woodside chief executive officer Meg O'Neill said the agreement, coupled with Woodside's 2025 LNG supply agreement with Germany's Uniper, helps establish the project's long-term customer base and provides revenue certainty for a portion of Louisiana LNG's planned production.

Note the wording: a portion. Neither deal covers the full foundation capacity. Woodside still has volumes to place, and the pace of that marketing will shape any future expansion decision at the site.

How far along is the project?

Louisiana LNG is under construction near Lake Charles, La., in Calcasieu Parish. The foundation project includes three liquefaction trains with a combined capacity of 16.5 million tpy and targets first LNG in 2029.

In its third-quarter report released Oct. 21, Woodside said the project is 32% complete and remains on budget. The breakdown by train:

• Train 1: 41% complete; structural steel and above-ground piping installation progressed
• Train 2: 27% complete; above-ground piping installation started
• Train 3: 22% complete; first concrete foundation poured

The spread between trains — 41% versus 22% — is normal for staggered construction, but it means the schedule's critical path runs through Train 3's early works.

Woodside disclosed one operational headwind: ongoing disruptions in the Middle East continue to affect structural steel supply. The company said it is mitigating the impact through alternative logistics routes and fabrication sources. It did not quantify the cost or schedule exposure from those disruptions, and "on budget" is management's own characterization pending future reporting.

Why does a seller of LNG keep buying it?

Because the two roles are not in tension for a portfolio player. QatarEnergy can lift US volumes, redirect Qatari cargoes, and serve customers from whichever basin offers the best netback (the revenue realized after freight and logistics). Buying FOB preserves that routing flexibility — the buyer controls the vessel.

The pattern now spans multiple US sellers: Cheniere first, Woodside next. Each agreement adds long-tenored volume to a portfolio that QatarEnergy can flex across Atlantic and Pacific demand. Whether that strategy pays depends on spreads between US feedstock costs and global LNG prices over 20 years — a margin nobody can forecast, only manage.

Takeaway: the deal locks in supply QatarEnergy controls and gives Woodside a bankable anchor buyer, but the first real test is Train 1 mechanical completion and the 2029 first-LNG target.