QatarEnergy has signed a 20-year sales and purchase agreement with Australia’s Woodside Energy (ASX: WDS) to secure up to 3 million tonnes per annum of liquefied natural gas, with deliveries slated to begin in 2030 from the Louisiana LNG project in the United States, according to a report by Asharq Al-Awsat.
The Louisiana Project Supply Terms
- Volume and Duration: Up to 3 million tonnes annually over a 20-year term, sourced from Woodside Energy’s participation interest.
- Delivery Basis: Cargoes will be supplied on a Free on Board (FOB) basis, requiring the buyer to manage shipping, insurance, and maritime transport logistics.
- Project Timeline: The Lake Charles-area facility targets first LNG production in 2029, with Qatari supplies scaling up during the second and third production trains.
Securing Long-Term Offtake at Lake Charles
Under the terms of the agreement, the shipments will originate from the multi-train Woodside Energy (ASX: WDS) development near Lake Charles, Louisiana. The project’s foundational phase encompasses three primary production trains with a combined nameplate capacity of 16.5 million tonnes per annum. QatarEnergy will draw its 3 million tonnes per year from Woodside’s dedicated share of the project capacity.
QatarEnergy to purchase 3 MTPA of U.S. LNG from Woodside Energy for 20 years#QatarEnergy #YourEnergyTransitionPartner #Qatar pic.twitter.com/vUlbdq6BuS
Deliveries are scheduled to ramp up incrementally. Volumes will begin flowing to the Qatari state-owned giant concurrently with the startup of the second production train, eventually reaching the full 3 million tonne annual run-rate once the third train becomes operational.
Global Portfolio Diversification and Revenue Visibility
The arrangement follows a previous supply agreement secured with Germany’s Uniper SE (ETR: UN0), providing the Australian energy firm with verified revenue visibility across a significant portion of its future American output.
The Louisiana hub serves as a critical geographic diversification asset within Woodside Energy’s (ASX: WDS) global portfolio.
| Project Metric | Specification |
|---|---|
| Contract Duration | 20 Years |
| Annual Volume | Up to 3 Million Tonnes |
| Delivery Terms | Free on Board (FOB) |
| Project Capacity | 16.5 Million Tonnes/Year (3 Trains) |
| Target Initial Production | 2029 |
| Supply Commencement | 2030 |
Commercialization Milestones Toward 2029
While the contracts with QatarEnergy and Uniper SE (ETR: UN0) establish baseline commercial support, the project team must complete remaining construction milestones ahead of the 2029 production window.
