U.K. LNG Imports From Qatar Set to Swell on New Supply Deal

U.K. LNG Imports From Qatar Set to Swell on New Supply Deal

Photographer: Tomohiro Ohsumi/Bloomberg

Photographer: Tomohiro Ohsumi/Bloomberg

Qatar is preparing to ramp up liquefied natural gas exports to the U.K. as the world's biggest LNG exporter boosts production capacity and looks for new long-term supply contracts.Qatar Petroleum reserved capacity for as much as 7.2 million tons of LNG per year at the Isle of Grain terminal from 2025 to 2050, or about 11% more than it shipped to the U.K. in 2019. The deal will lock up about 40% of the London facility's capacity after its owner, National Grid Plc, expanded the terminal.

The deal bolsters the Persian Gulf country's plan to increase its annual liquefaction capacity by 43% to 110 million tons in 2025.

Qatar is already the U.K.'s biggest supplier of LNG by far, and the agreement announced Tuesday will give state-run Qatar