In a move that reflects long-term energy planning, the U.S. Gulf Coast is locking in its commercial ties for the next three decades, as U.S.-headquartered energy player Cheniere has shown with a landmark liquefied natural gas (LNG) deal with Qatar’s state-owned oil and gas giant QatarEnergy, signing on to deliver millions of tonnes of LNG straight through 2054.
Cheniere Energy’s subsidiaries, Sabine Pass Liquefaction (SPL) and Corpus Christi Liquefaction (CCL), have each entered into long-term LNG sale and purchase agreements (SPAs) with QatarEnergy to supply a total of 4 million tonnes per annum (mtpa) of LNG through 2054.
Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer, commented: “These pivotal, multi-decade agreements with QatarEnergy, one of the world’s most important energy companies and a cornerstone of the global LNG industry, represent a major long-term commercial commitment and reinforce Cheniere’s position as the leader in U.S. LNG.
“We take pride that Cheniere’s track record of operational excellence, reliability and long-term customer focus provided the foundation for this landmark commercial relationship with QatarEnergy. We look forward to reliably supplying QatarEnergy from both Sabine Pass and Corpus Christi into the second half of this century.”
While confirming the two SPAs for the purchase of LNG from Cheniere’s Sabine Pass and Corpus Christi facilities in Louisiana and Texas respectively, located along the United States Gulf Coast, QatarEnergy explained that these deals reflect its continued confidence in the long-term role of LNG in the global energy mix and its efforts to further develop a flexible, diversified, and globally competitive LNG portfolio.
The SPAs were signed by Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, President and CEO of QatarEnergy, and Jack Fusco, Chairman, President and CEO of Cheniere Energy.
Minister Al-Kaabi said: “The signing of these two SPAs marks an important milestone in our LNG strategy. This major long-term purchase will expand and diversify our global LNG portfolio and advance our ability to meet the evolving requirements of the market.
“The additional volumes will complement QatarEnergy’s existing LNG supplies, enhance our supply and trading portfolio, and strengthen our ability to serve customers across the globe.”
The Qatari giant has agreed to purchase 2 mtpa of LNG from each of SPL and CCL on a free-on-board (FOB) basis for a purchase price indexed to the Henry Hub price plus a fixed fee.
The deliveries under the SPAs will begin in the early 2030s and continue through the end of 2054, with 1 mtpa of the SPL SPA subject to a positive final investment decision (FID) for the first phase of the SPL Expansion project.
Cheniere Energy Partners is developing an expansion of the existing Sabine Pass liquefaction project with an expected total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities, which would grow the total production capacity of the SPL project to over 50 mtpa of LNG.
The U.S. player expects to execute the SPL Expansion project in a phased approach, with the first phase anticipated to include a single train, Train 7, and a boil-off gas re-liquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG terminal. This phase has an expected total production capacity of over 6 mtpa of LNG, inclusive of estimated debottlenecking opportunities.
In May 2026, the lump sum, turnkey engineering, procurement, and construction (EPC) contract was penned with Bechtel Energy for the first phase of the SPL Expansion project, and the firm was given the go-ahead for early engineering and procurement under a limited notice to proceed (LNTP).
Cheniere’s liquefaction portfolio consists of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 56 mtpa of LNG in operation and an additional approximately 5 mtpa of expected production capacity under construction, inclusive of estimated debottlenecking opportunities.