Qatar Seeks to Reclaim Japanese LNG Market with New Deal
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Hashim Sheikh
- . May 1, 2025
- . Update: May 1, 2025 10:54 pm
Multiple sources validated that QatarEnergy holds active negotiations with its Japanese importers to finalize a substantial liquefied natural gas (LNG) supply contract this week. A potential contract would bring at least 3 million metric tons of LNG each year from the North Field expansion project in Qatar.
The ongoing negotiations involve Mitsui & Co with its trading capabilities as well as JERA which stands as Japan’s most powerful electricity producer among other gas suppliers. The finalized agreement will enable Qatar to maintain its power position in Japan’s energy market outside of American and Gulf suppliers from the region.
The power of Qatar in Japanese LNG markets has declined throughout the past several years. Japan sent more than 15 million tons of LNG annually to foreign markets post-Fukushima but this supply amount declined when Japan returned to nuclear power generation and introduced multiple sources.
The forthcoming agreement emerges as essential for Qatar because it will drive its North Field expansion to produce 142 million tons per annum of LNG by 2030. The worldwide supplier of LNG to Japan which stands as the second-largest import market after China views this agreement as an advance in securing its energy supply from multiple origins.
The executives of JERA expressed their interest in purchasing more American LNG supplies while evaluating Middle Eastern options to meet the expanding demands of energy consumption by data centers and AI technology infrastructure.