CALCASIEU PARISH, La. — One of the world’s largest liquefied natural gas suppliers is in talks to buy a major block of future production from Woodside Energy’s Louisiana LNG project, a potential deal that would strengthen the commercial foundation of the multibillion-dollar export terminal now under construction near Lake Charles.
QatarEnergy is negotiating to purchase as much as 3 million metric tons of LNG annually from the project, according to Reuters, which cited people familiar with the discussions. A potential agreement could run for 15 to 20 years.
Neither QatarEnergy nor Woodside has announced a final contract, and Woodside declined to comment on market speculation. The negotiations therefore should not be treated as a completed sale. But the scale of the talks is significant for a project designed to produce 16.5 million metric tons of LNG annually in its initial development.
Louisiana LNG, formerly known as Driftwood LNG, is being built on the Calcasieu River south of Lake Charles. Woodside acquired Tellurian in 2024 and later moved the project into construction, positioning it as one of the largest new LNG developments on the Gulf Coast.
A 3-million-ton annual commitment would represent roughly 18 percent of the project's planned initial production capacity. Long-term sales contracts are closely watched in the LNG industry because they can provide predictable revenue and help support financing for capital-intensive export facilities.
The negotiations are occurring against an unusual global backdrop. Disruptions affecting Middle East gas and shipping have tightened LNG supplies and pushed buyers to seek additional U.S. cargoes. Qatar, normally one of the world’s dominant LNG exporters, has itself been buying American LNG to help meet customer commitments.
That shift illustrates why Louisiana’s LNG buildout has implications far beyond the Gulf Coast. Export terminals in Cameron, Calcasieu and Plaquemines parishes increasingly function as part of the global energy-security system, capable of redirecting U.S. natural gas toward Europe, Asia and other markets when supplies elsewhere are disrupted.
QatarEnergy already has long-term exposure to U.S. LNG. Reuters reports that the company has a 4-million-ton-per-year supply agreement with Cheniere Energy divided between Cheniere’s Louisiana and Texas facilities and is also in advanced discussions for additional supply from Venture Global.
For Woodside, landing another large buyer would help address a central commercial challenge: converting the Louisiana project’s enormous future production capacity into contracted sales. The company has continued pursuing customers and partners as construction advances.
The pricing structure is also part of the negotiations. Reuters reported that Louisiana LNG has been seeking liquefaction fees above $2.50 per million British thermal units while offering buyers flexibility that can command a premium. Exact commercial terms remain confidential and could change before any agreement is signed.
The story for Louisiana is therefore not that Qatar has committed to buying the gas. It has not — at least not publicly. The development is that one of the most experienced LNG companies in the world is negotiating for a substantial long-term share of output from a Louisiana terminal already under construction.
If a deal is completed, it would add another international customer to Louisiana’s growing LNG network and further connect southwest Louisiana’s industrial economy to energy markets thousands of miles away.
Sources
Reuters — QatarEnergy in talks for Louisiana LNG supply, Oct. 23, 2026
