QatarEnergy, the world’s largest liquefied natural gas exporter, announced Thursday a new multi‑decade contract to purchase up to 3 million metric tons of LNG each year from Woodside Energy’s under‑construction export facility in Calcasieu Parish, Louisiana. The agreement runs for 20 years, with deliveries slated to begin in 2030 after the plant’s first production is expected in 2029.
Local impact and job creation
The Woodside project, located near Lake Charles, secured a $2.8 billion property tax exemption under Louisiana’s Industrial Tax Exemption Program. Woodside has pledged to employ 350 permanent full‑time workers once the plant is operational. When construction began in 2025, Governor Jeff Landry highlighted the development as the largest foreign investment in Louisiana’s history, noting that the construction phase will generate more than 4,000 temporary jobs.
Additional QatarEnergy contracts
Last week QatarEnergy signed two agreements with Houston‑based Cheniere Energy for a total of 4 million metric tons of LNG per year, to be supplied from Cheniere’s export plants in Cameron Parish and Corpus Christi, Texas, beginning in the early 2030s and extending through 2054. One million metric tons of that volume is tied to a final investment decision on the first phase of the Sabine Pass expansion.
Qatar’s energy minister, Saad Sherida Al‑Kaabi, said the new purchases reinforce QatarEnergy’s long‑term growth and diversification strategy, and that the contracts make QatarEnergy the largest buyer of U.S. LNG.
Broader market context
Louisiana’s two largest LNG exporters, Cheniere Energy and Venture Global, are both planning expansions at their plants in Louisiana and Texas. Cheniere currently operates about 56 million metric tons of capacity per year, while QatarEnergy projects its own annual LNG exports to reach 110 million metric tons by 2029.
Energy market analyst Ed Hirs of the University of Houston noted that QatarEnergy’s low‑cost production allows it to act quickly in the global market. He pointed to the surge in “associated gas” from oil drilling in the Permian Basin, where oil output hit a record 6.8 million barrels per day in September, making U.S. natural gas highly competitive.
Tax incentives and state support
In addition to Woodside’s exemption, Cheniere’s Sabine Pass plant in Johnson Bayou received a $4.9 billion property tax exemption over ten years, with Louisiana Economic Development estimating the project will create 1,096 new full‑time jobs.
These incentives reflect the state’s commitment to expanding its LNG infrastructure, positioning Louisiana as a key hub for meeting rising global demand for natural gas.
Original reporting: KTBS 3 (Shreveport) — read the source article.
