QatarEnergy is reportedly in advanced discussions with Japanese companies to secure a long-term liquefied natural gas (LNG) supply deal of at least three million tonnes per annum (mtpa) from the company’s North Field expansion project, reported Reuters, citing sources.
If finalised, the deal would reinforce Qatar's long-standing influence in the Japanese market amidst growing competition from the US and other Gulf suppliers.
This development comes after reports in October suggested Qatar was struggling to secure term deals with east Asian buyers due to competitive pressures, the report said.
Japan, as the world's second-largest LNG buyer after China, imported 65.89 million tonnes (mt) of LNG last year.
Qatar's prominence as a key supplier to Japan is well-established, with substantial shipments in the years following the 2011 Fukushima disaster.
The Japanese entities involved in the talks with QatarEnergy include JERA, the country's largest power generator, and trading house Mitsui & Co.
While the discussions are private, a JERA executive highlighted the importance of diversifying their supply sources at a recent earnings briefing.
JERA financial strategy and planning division head Naohiro Maekawa was quoted as saying: “Asia-Oceania currently accounts for more than half of our procurement sources. For supply stability, expanding options to regions like North America and the Middle East would be beneficial.”
Mitsui confirmed ongoing discussions with various sellers to secure a stable LNG supply but refrained from disclosing specifics, the report said.
QatarEnergy, which did not respond to an immediate request for comment, was the world's third-largest LNG exporter in 2024, with exports reaching 79.54mt, as per Kpler data.
Qatar is ambitiously planning to boost its LNG output by 85% to 142mtpa by 2030, a significant increase from the previously projected 126mtpa.
QatarEnergy has also secured a 25-year condensate supply deal with Shell International Eastern Trading Company, a subsidiary of Shell.
Set to start in July 2025, this contract will see up to 285 million barrels of condensate supplied over its duration.
