State-run energy firm QatarEnergy is negotiating long-term contracts to purchase liquefied natural gas (LNG) from American suppliers following severe disruptions to its export capacity caused by the war with Iran.
Anonymous sources close to the matter revealed that QatarEnergy is seeking volumes from both operational facilities and export projects currently under development in the United States, reports Bloomberg.
The negotiations mark the initial indication since the conflict broke out that the country is seeking to expand its commercial portfolio outside the Middle East.
The prospective deals highlight how the US-Iran war is compelling Qatar to source alternative natural gas supplies to satisfy its international buyers. While the nation previously provided roughly one-fifth of global LNG demand, exports have effectively ceased due to the extreme risks of navigating tankers through the Strait of Hormuz.
Prior to the eruption of fighting in late February, Qatar was advancing an ambitious expansion to nearly double output at its Ras Laffan export plant by 2030. However, the facility, the largest of its kind globally, suffered damage from an Iranian strike during the early weeks of the hostilities, with complete repairs potentially requiring three to five years.
QatarEnergy did not respond to requests for comment.
The conflict shows no signs of nearing an end, as Iran stands prepared to escalate and senior US officials anticipate the fighting could continue through 2029, according to a Wall Street Journal report. The prospect of an extended war appears to be driving Qatar to place greater emphasis on gas trading operations.
