QatarEnergy Is Talking With Japanese Companies About Long-Term LNG Supply Deal, Report Says

BY THE ARAB TODAY May 02, 2025

QatarEnergy Is Talking With Japanese Companies About Long-Term LNG Supply Deal, Report Says
QatarEnergy Is Talking With Japanese Companies About Long-Term LNG Supply Deal, Report Says

QatarEnergy Is Talking With Japanese Companies About Long-Term LNG Supply Deal, Report Says

QatarEnergy is said to be talking with Japanese companies to make a long-term agreement to supply liquefied natural gas (LNG) from its North Field Expansion project.

Looking at LNG Deal

QatarEnergy is in talks to supply at least 3 million metric tons of liquefied natural gas (LNG) each year to a group of Japanese buyers, according to a Reuters report that quoted four sources from the trading and energy industries.

The group includes JERA, a major energy company that is a partnership between Tokyo Electric Power and Chubu Electric Power. It is also Japan’s largest power generator. Another member of the group is Mitsui & Co., a large trading company.

If the deal goes through, it would help Qatar keep its strong position in the Japanese market, which it has held for many years. This comes as Qatar faces tough competition from other LNG suppliers like the US, UAE, and Oman.

This deal would also be the first after an earlier report from Reuters in October, which said that Qatar was struggling to sign new LNG supply deals with Japan and South Korea because of growing competition.

Japan is the world’s second-largest buyer of LNG after China, having imported 65.89 million tons last year.

JERA Looking for More Suppliers

JERA said it is in talks with many suppliers to buy LNG. It mentioned that Qatar is an important supplier but did not give details about the current discussions.

At a news conference on Monday, JERA executive Naohiro Maekawa said the company needs to get LNG from a wider range of sources. “Right now, more than half of our LNG comes from Asia-Oceania. To keep supplies stable, it would help to also buy from places like North America and the Middle East,” he said.

Qatar’s Role in the LNG Market

In 2024, Qatar was the third-largest LNG exporter in the world, after the US and Australia, sending out 79.54 million metric tons, according to data from Kpler.

Qatar plans to increase its LNG production by 85% by 2030 — from 77 million tons per year now to 142 million tons — by expanding its North Field.

Qatar was one of Japan’s top three LNG suppliers around 2015. Between 2012 and 2014, it sold over 15-16 million tons per year to Japan, especially after the Fukushima nuclear disaster in 2011 led Japan to shut down its reactors.

However, as Japan restarted some of its nuclear power plants, it needed less LNG. JERA did not renew its contract with Qatar (which had supplied 5.5 million tons a year) when it ended in 2021. Last year, Qatar sold less than 3 million tons to Japan.

Published: 2nd May 2025

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