QatarEnergy signs long-term LNG supply agreement with Japan's Jera amid surge in demand
QatarEnergy signed a contract with Japan's largest power generator Jera on Tuesday to supply 3,000,000 tons of LNG per year for 27 years starting in 2028. This deal will further strengthen Qatar's position on the Japanese market.
The agreement was made at the LNG2026 Conference in Doha and would strengthen QatarEnergy’s position in Japan, as the competition from U.S. companies and Gulf rivals,?United Arab Emirates, and Oman who offer more flexible terms, intensifies.
The two firms have been in talks for months. First reported the talks in 2025.
Jera stated that the agreement "strengthens Japan’s energy security through our deepening partnership with Qatar, and?diversifying our supply sources by a greater weighting in our LNG portfolio of Middle East and is in line with Japan’s energy policy."
Jera said that the LNG volumes delivered to their destination will help support gas-fired power generation and meet the?increasing electricity demand caused by new data centres and semiconductor plants.
JAPAN EXPORTS TO QATAR DECLINED OVER THE PAST 10 YEARS
Qatar has historically dominated the Japanese LNG market. It was one of the top three LNG suppliers to Japan a decade earlier, shipping more than 15-16 mtpa between 2012 and 2014. Qatari LNG exports from Qatar to Japan will reach 3.59 million tonnes in 2025.
Japan's exports have declined over the last decade, as buyers prefer to buy from the U.S.A., UAE, and Oman which offer shorter contracts, and less destination restrictions.
Jera, Japan’s largest LNG buyer, is working to diversify its sources of supply in order to meet the demand growth spurred by data centres and artificial intelligence. Jera, Japan's?largest LNG buyer, has been working to diversify its supply sources in order to meet the demand growth spurred?by data centres and AI.
In June, the company agreed to new supply 'deals unknown' for U.S. LNG derived from four projects in order to diversify their global portfolio and move away from Australia. The recent deals will increase the U.S. LNG share from 10% to 30% in the early 2030s.
(source: Reuters)