The Gulf Is Offshoring Itself

Qatar and Saudi are buying American energy to resell to their customers, storing theirs offshore, the UAE has paid Tehran for quiet, and the image of independence the Gulf had is fading.

QatarEnergy's LNG production facilities in Ras Laffan. Source: Reuters

On 29 October, QatarEnergy signed a 20-year contract to buy up to 3m tonnes a year of LNG from Woodside’s Louisiana plant, which is still under construction. A week earlier, it signed to buy 4m tonnes a year from Cheniere’s Sabine Pass and Corpus Christi terminals, from 2031 to the end of 2054. It is also in advanced talks with Venture Global for at least 3m tonnes more. Aramco had negotiated for the Woodside volumes in 2025. Since then, it has signed to buy 1m tonnes a year from Commonwealth LNG in Louisiana, in addition to 1.2m tonnes a year from Rio Grande LNG in Texas. On 26 October, Aramco also agreed to store Saudi crude in the Jurong Rock Caverns in Singapore. The Gulf’s largest gas exporter and its largest oil exporter are buying American energy to sell under their own names, and they are moving their own oil offshore, closer to their customers.