Qatar continues to explore US market for LNG supply

NextDecade’s Train 6 at its Rio Grande LNG project could provide QatarEnergy with the additional US LNG supply it is seeking.

What: QatarEnergy is continuing its hunt for LNG it can procure from US suppliers with interest expressed in buying 2mn tonnes per year.

Why: Qatar continues to scramble for LNG to halt its declaration of force majeure on contracted supplies as uncertainty continues to swirl around its production.

What Next: Advanced talks are underway, however a final investment decision has yet to be made on the train, which is expected to be taken next year.  

QatarEnergy is looking to secure additional LNG supplies from the US with the Gulf state-run company in advanced talks with NextDecade to purchase supply from its proposed Train 6 at its Rio Grande LNG project in Texas, Reuters reported on November 6, citing sources with knowledge on the matter.

Negotiations continue on a potential deal that would see the Gulf company buy up to 2mn tonnes per year (tpy) of super-chilled fuel from NextDecade (NASDAQ: NEXT). However, despite the rumoured interest, Qatar’s quest to purchase additional US LNG could require an obstacle to be cleared, as NextDecade has still yet to make a final investment decision (FID) on Train 6.

Permit and authorization approvals are under way with an application already submitted to the Federal Energy Regulatory Commission (FERC) and the US Department of Energy (DOE) for export authorizations.

NextDecade has received strong interest in the project, located near Brownsville, Texas with buyers already secured for its first five liquefaction trains, which will produce 30mn tpy.

If the green light is given to Train 6, it could unlock further expansion of the project with NextDecade also considering adding Trains 7 and 8. If all three trains get the go-ahead, the project’s production capacity would soar to about 48mn tpy.

The news comes fresh off QatarEnergy securing LNG supply from Australian LNG producer Woodside Energy (NYSE: WDS) on October 29. The state-run Gulf firm agreed to buy 3mn tpy of super-cooled gas from Woodside’s Louisiana LNG project for a 20-year period.

Meanwhile, that deal came in the wake of another deal inked on October 22. QatarEnergy confirmed it will buy up to 4mn tpy of LNG from the US’s largest supplier Cheniere Energy (NYSE: LNG), which will source the supply from two export terminals on the US Gulf Coast. Deliveries will commence in 2031 and continue until 2055 with 2mn tpy supplied from each of Sabine Pass LNG and Corpus Christi LNG.

Moreover, QatarEnergy has also had recent discussions with the US’s second largest LNG exporter, Venture Global (NYSE: VG) on procuring supply from the Arlington, Virginia-headquartered firm.

The developments come as US LNG exports continue to soar. Feedgas consumption at US export terminals climbed to a preliminary record of 20.4bn cubic feet (578mn cubic metres) per day on November 9, according to London Stock Exchange Group data cited by Reuters.

The US is seeing almost all of its operating LNG export terminals running at capacity or near capacity.

Average US LNG feedgas demand for November has already reached approximately 18.9bn cubic feet (535mn cubic metres) per day. The figure would represent a monthly record and showcases that the daily record on November 9 is part of a sustained period of strong export activity rather than an isolated increase.

For QatarEnergy, the growing interest in American supply reflects the firm’s challenges facing its traditional export operations. Damage to Qatari LNG infrastructure at the Ras Laffan Industrial Complex and disruption to shipping through the Strait of Hormuz have created uncertainty around the company's ability to maintain deliveries under existing long-term contracts.

NewsBase Horizon, our intelligence and advisory division, views the company’s push to secure alternative sources of supply as an attempt to reduce its exposure to external shocks and geopolitical risks.

The importance of diversifying supply geographically has never been more important. Beyond the closure of the Strait of Hormuz by Iran’s Revolutionary Guard Corps, LNG tankers have also come under attack by Yemen’s Houthi rebels in the Bab el-Mandeb Strait. Attacks on vessels peaked in February 2024 but occurred again as recently as March 2026.

Challenges have also emerged in recent years for exporters seeking to use the Panama Canal, with drought causing major delays in October 2024. At one point traffic through the canal had dropped 65% as a result of the extensive delays and costly transit fees due to severe drought.

And in March 2021, LNG tankers were unable to move through the Suez Canal for six days when a ship ran aground and wedged sideways in the single-lane southern section of the canal.

New regulatory requirements from some LNG suppliers have also thrown a spanner in the works for some LNG buyers. In Australia, changes to the Australian Domestic Gas Security Mechanism and a new domestic gas reservation policy have both caused purchasers to question whether the third-largest LNG exporter can be relied on.

Indeed, significant damage has been done to Qatar’s reputation as a reliable supplier of LNG. Doha cannot afford for buyers to be hesitant to do business with Qatar, particularly as it seeks to increase output from 77mn tpy to first 126mn tpy in either 2027 or more likely now 2028. It is also planning to raise production capacity further to 142mn tpy by 2030.

Given these ambitions, Qatar is right to ramp up purchases of US LNG as it seeks to stabilize domestic production and deliveries to international buyers.