QatarEnergy is negotiating a long-term liquefied natural gas (LNG) supply deal with several major Japanese energy companies, Reuters reported, citing unnamed sources.
The talks involve a minimum volume of 3 million tons of LNG per year. The supply would be shared among Japanese giants including JERA and Mitsui & Co.
Qatar is already Japan’s largest LNG supplier. This deal would strengthen Qatar’s dominant position in the Japanese market amid rising competition among LNG producers worldwide.
Qatar is investing billions to expand its part of the North Field, the world’s largest natural gas field. The original plan was to double LNG output by 2030 from under 80 million tons annually. Last year, Qatar increased this target, aiming to boost LNG capacity by up to 85% by 2030, reaching 142 million tons per year.
To ensure steady demand for its LNG, QatarEnergy is signing long-term contracts. Last year, it agreed to supply Kuwait with 3 million tons annually over 15 years. Iraq is also a potential buyer.
Asia remains the most important market for LNG suppliers, except the U.S., which mainly ships LNG to Europe. Within Asia, Japan is highly sought after due to its heavy reliance on energy imports. Last year, Japan imported nearly 66 million tons of LNG.
“At present, Asia-Oceania accounts for more than half of our LNG procurement,” said the head of JERA’s financial strategy and planning division. “For supply stability, expanding options to regions like North America and the Middle East would be beneficial,” he added during a recent earnings call.
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