Japan and Qatar sign 27-year LNG deal securing 3 million tons annually

Japanese energy firm Jera Co. and Qatar's state-owned QatarEnergy have signed a landmark 27-year agreement for the supply of 3 million tons of liquefied natural gas annually beginning in 2028, media reports confirmed Saturday. The long-term contract represents one of the most significant energy partnerships between the two nations, cementing Qatar's role in Japan's diversified procurement strategy.

Strategic Diversification and Energy Security

Jera, among the world's largest LNG buyers, emphasized its commitment to maintaining a resilient and balanced procurement portfolio spanning the Middle East, Asia-Pacific, and the United States. The agreement ensures stable long-term supply as Japan continues to rely on LNG-fired thermal power alongside nuclear and renewable sources. Under Tokyo's latest energy plan, thermal power's share is projected to decline to 30-40% by fiscal 2040, down from 68.6% in fiscal 2023, making secure, long-term contracts essential for managing the transition.

Emergency Response Mechanism

Japan's Ministry of Economy, Trade and Industry separately signed a memorandum of understanding with Jera and QatarEnergy establishing a framework for Tokyo to request additional LNG supplies during natural disasters or other energy security emergencies. This provision enhances Japan's crisis response capabilities, reflecting lessons learned from previous supply disruptions. Japan imported 66.15 million tons of LNG in 2023, with Australia supplying 41.6%, Malaysia 15.6%, and Qatar contributing 4.4%. The new agreement will substantially increase Qatar's share in Japan's energy mix over the coming decades.