Qatar turns to US for long-term LNG supplies

Qatar is in negotiations with US-based suppliers to purchase liquefied natural gas (LNG) on long-term contracts as the war in Iran has caused a major disruption to its natural gas supply, Bloomberg quoted sources familiar with the development.

Qatar is considering buying gas from US projects that are currently operational as well as those which are under construction, said the report.

This is the first instance after the commencement of the war that Qatar is exploring sources for purchasing LNG outside West Asia in a bid to diversify its supplies.

Qatar used to account for about 20% of the total LNG exports. However, their LNG exports have almost ceased owing to rising risks for the gas carriers passing through the Strait of Hormuz.

Prior to the onset of the war in late February, Qatar had plans to almost double gas production at its Ras Laffan LNG facility by 2030. This facility suffered extensive damage in the course of the war with the blame for this damage being put on Iran.

It will take three to five years for full repairs of the facility to be made whereas there are no immediate signs of peace between Iran and Qatar soon.