Gas
Qatar becomes top buyer of US LNG amid Hormuz crisis
State-owned QatarEnergy has secured major long-term supply deals with United States producers following severe disruptions to its export infrastructure caused by the ongoing conflict in the Middle East.
Key points
- Qatari LNG exports severely constrained by the closure of the Strait of Hormuz.
- QatarEnergy extended force majeure on long-term deliveries through December 2026.
- New long-term purchase agreements signed with Cheniere and Woodside Energy.
What happened
Qatar, previously one of the world's leading exporters of liquefied natural gas, has become the largest buyer of U.S. LNG, according to reporting by OilPrice.com. The extraordinary shift stems from the ongoing conflict involving Iran and the prolonged closure of the Strait of Hormuz, which has heavily restricted maritime traffic for Qatari shipments.
In March, Iranian missile attacks struck Qatari energy facilities, disabling 17 percent of the country's export capacity and resulting in an estimated annual revenue loss of 20 billion U.S. dollars, as stated by QatarEnergy. With cargo movement largely paralyzed, the state-owned energy firm has been forced to declare force majeure on several long-term contracts.
Operational disruptions and mitigation
QatarEnergy recently extended its force majeure on deliveries to Asian and European markets through the end of December 2026. Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, explained that transporting natural gas via pipelines is not a viable alternative due to prohibitive commercial and technical hurdles.
To manage ongoing supply risks and portfolio obligations, QatarEnergy turned to North American producers. The firm signed long-term agreements with Cheniere to purchase up to 4 million tons per annum from Sabine Pass and Corpus Christi, with deliveries scheduled from 2031 to 2054. Additionally, a 20-year agreement was struck to acquire 3 million tons per annum from Woodside Energy's Louisiana project starting in 2030.
Why it matters
The reconfiguration of trade flows highlights the vulnerability of major energy exporters to geopolitical chokepoints. As traditional supply routes face extended closures, market fundamentals shift. On November 3, 2026, the Henry Hub natural gas spot price stood at 2.63 U.S. dollars per MMBtu, while Brent crude was recorded at 107.03 U.S. dollars per barrel, according to U.S. Energy Information Administration data. For energy investors and African producers developing cross-border or export-oriented gas infrastructure, the Qatari pivot demonstrates the growing necessity of portfolio diversification and risk management against unforeseen geopolitical disruptions.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
79.2% of electricity in Iran came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
