QatarEnergy in Advanced Talks to Buy 3M Tons/Year of LNG From Venture Global
VG has more than doubled off its 52-week low of $5.72.
Summary
QatarEnergy is in advanced talks to buy at least 3 million metric tons a year of LNG from Venture Global under a long-term supply deal, per Reuters. No terms beyond volume are known. The talks come as QatarEnergy has been buying spot LNG from Venture Global to serve customers while the Strait of Hormuz blockage from the U.S.-Iran war keeps Qatari exports constrained. A signed long-term contract would add another multi-year offtake commitment on top of the 20-year deals Venture Global struck with China Gas Holdings in September and ConocoPhillips on October 1. Earlier Thursday, Cheniere signed its own long-term supply deal with QatarEnergy covering 4 million tons a year from 2031 to 2054, so the counterparty is actively locking in U.S. volumes.
At the time of this announcement, VG was trading at $12.80 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $32B. The 52-week trading range was $5.72 to $17.62. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.