Qatar eyes American LNG as Iran conflict hits supplies

Bangla Press Desk:  Qatar is in discussions to buy liquefied natural gas from US suppliers under long-term agreements as the Iran war has crippled its ability to supply its own customers, according to people familiar with the matter.

State-owned QatarEnergy is interested in supplies from existing and under-construction export projects, said the people, who asked not to be named as the talks are private. The discussions are the first indication since the start of the war that Qatar is looking outside of the Middle East to expand its portfolio.The potential deals highlight how the US-Iran war is pushing Qatar to look for alternative sources of gas to satisfy its customers. The country used to supply around a fifth of the world’s LNG, but its shipments have all but ground to a halt due to the riskiness of moving gas tankers through the Strait of Hormuz.

QatarEnergy did not respond to a request for comment.

Before the war erupted in late February, Qatar was pushing ahead with an ambitious plan to nearly double production from the Ras Laffan LNG export plant by 2030. However, the facility, the world’s largest, was damaged by an Iranian strike in the early weeks of the conflict and may take as long as three to five years to fully repair.

The war shows no signs of ending anytime soon, with Iran ready to escalate and top US officials raising the prospect it could last through through 2029, according to a Wall Street Journal report. The spectre of a lengthy conflict may be forcing Qatar to focus more on trading.

Qatar already has access to some US supply: It’s one of the owners of the Golden Pass LNG plant in Texas, which began exports in April and has been ramping up production. The Persian Gulf producer has also been steadily increasing its capabilities to ship fuel from the US with its QatarEnergy trading unit, which focuses on shorter-term trading.