Energy / Middle East · Public record
Qatar to become largest US LNG buyer after Iran war blocks Hormuz exports
Qatar, formerly the world's second-largest LNG exporter, has signed agreements to purchase 7 million tons per year from American producers after Iranian missile attacks destroyed 17 percent of its export capacity and the Strait of Hormuz closure blocked its main shipping route. The deals mark a reversal in which a major exporter becomes the largest buyer from its primary competitor.
What happened
QatarEnergy signed two separate agreements in October 2026 to purchase liquefied natural gas from United States producers. The state energy firm agreed to buy up to 4 million tons per year from Cheniere Energy's Sabine Pass and Corpus Christi facilities, with deliveries beginning in 2031 through 2054. A second deal secured 3 million tons per year from Woodside Energy's Louisiana LNG project starting in 2030 for 20 years.
The purchases make QatarEnergy the largest buyer of American LNG. According to QatarEnergy's chief executive Saad Sherida Al-Kaabi, the volumes place the firm in a stronger position to meet global LNG demand. Qatar was the world's second-largest LNG exporter before the Iran war, while the United States overtook Qatar as top exporter earlier in the 2020s.
Why Qatar needs US gas
Iranian missile attacks in March 2026 destroyed 17 percent of Qatar's LNG export capacity. QatarEnergy reported the strikes caused an estimated 20 billion dollars in annual revenue loss. The closure of the Strait of Hormuz, now in its ninth month as of November 2026, continues to block most of Qatar's LNG cargo traffic.
QatarEnergy declared force majeure on some long-term contracts for up to five years. The firm extended force majeure on deliveries to Asia and Europe through the end of December 2026. Al-Kaabi stated in September that very few cargoes are moving through the Strait of Hormuz, with some shipments going through Iran to Pakistan and a few ships passing through the Strait.
Al-Kaabi explained that LNG cannot be transported by pipeline like oil, requiring gas to be moved via pipeline and then liquefied at receiving terminals. He said building redundant facilities to those already under construction as part of the North Field expansion project makes no economic sense. Qatar decided against using pipelines as an alternative based on commercial and technical criteria.
Who is affected
Qatar faces tens of billions of dollars in losses from missed sales, according to the source. QatarEnergy's perception as a reliable supplier of regular term deliveries has been undermined. The firm had expansion plans for the rest of the decade that were rivaled only by the United States before the war upended those plans.
Al-Kaabi stated Qatar is ready to resume normal operations within a few weeks of the Strait of Hormuz reopening. However, Qatar is hedging against what could be permanently changed access through the chokepoint. The deals reflect QatarEnergy's strategy to develop a flexible, diversified and globally competitive LNG portfolio, according to the firm's statement.
American LNG producers Cheniere and Woodside Energy gain long-term purchase agreements extending into the 2050s. Asian and European buyers under contract with Qatar continue to face supply disruptions under force majeure declarations. The Iran war has changed the global LNG supply market in both availability and reliability.
What to watch
- Whether the Strait of Hormuz reopens to normal LNG traffic in the coming months, which Al-Kaabi said would allow Qatar to resume operations within weeks
- Whether QatarEnergy extends force majeure declarations beyond December 2026, indicating continued Hormuz blockage
- Whether deliveries from the Cheniere and Woodside contracts begin on schedule in 2030 and 2031, testing whether Qatar maintains its buyer position
- Whether Qatar announces additional LNG purchase agreements with other producers, signaling permanent diversification away from Hormuz dependence
What we don't know yet
- The current operational status of Qatar's damaged LNG facilities seven months after the March attacks
- The volume of LNG Qatar is currently producing at reduced capacity
- The specific terms and pricing of the Cheniere and Woodside purchase agreements