Top LNG exporter QatarEnergy in talks to buy US LNG from Woodside's Louisiana plant

By Curtis Williams and Marwa Rashad

HOUSTON, Oct 23 (Reuters) - QatarEnergy is in talks with Woodside Energy WDS.AX to buy up to 3 million metric tons of liquefied natural gas per annum (mtpa) from its Louisiana LNG plant under construction, three people with knowledge of the negotiations told Reuters.

If a final agreement is reached, the long-term deal could see QatarEnergy buying LNG from the 16.5 mtpa export facility for between 15 and 20 years, one of the people said.

Woodside Energy said on Friday it does not respond to market speculation, while QatarEnergy did not immediately respond to a request for comment.

QatarEnergy has been buying LNG on the spot market from US exporters to supply some of its customers due to the ongoing blockage of the Strait of Hormuz as the US-Israeli war on Iran and Tehran’s strikes this year have sharply curtailed shipping.

The company is also a 70% owner of the Golden Pass LNG facility being developed in Louisiana, which when complete will have the capacity to export up to 18 mtpa of LNG.

On Thursday, Cheniere Energy LNG.N reported it had reached a long-term agreement to supply QatarEnergy with 4 mtpa of LNG. Two million metric tons per year will be sourced from Cheniere’s Sabine Pass facility in Louisiana, and another 2 mpta will come from its Corpus Christi terminal in Texas.

Reuters also reported on Thursday that QatarEnergy is in advanced talks with Venture Global VG.N for a long-term supply deal to buy at least 3 million metric tons of LNG per year.

Venture Global and Woodside's Louisiana LNG are the US suppliers with the most uncommitted LNG capacity.

Louisiana LNG is said to be asking for a premium for liquefaction fees that exceed $2.50 per mmBtu and are above the average US market prices because of contract flexibility, offering potential buyers shorter contracts in return for higher prices, two people told Reuters.