QatarEnergy Eyes Long-Term LNG Deal With Japan Amid Rising Global Competition

QatarEnergy, one of the world’s top liquefied natural gas (LNG) exporters, is reportedly in advanced talks with Japanese firms for a long-term LNG supply deal from its North Field expansion project, sources told Reuters. The deal could see Qatar supplying at least 3 million metric tons annually to a consortium of Japanese importers, including JERA, Japan’s largest power utility, and trading giant Mitsui & Co.

This potential agreement would reinforce Qatar’s dominant position in the Japanese LNG market, as it faces growing competition from the U.S., the UAE, and Oman, which offer more flexible contract terms. It would also mark the first major long-term contract since reports emerged last October that Qatar was struggling to secure term deals with East Asian buyers.

Neither QatarEnergy nor Mitsui disclosed deal specifics, though both acknowledged ongoing discussions. JERA confirmed it is speaking with various suppliers and emphasized the importance of diversifying LNG sources beyond Asia, pointing to North America and the Middle East as key options.

Qatar, the third-largest LNG exporter in 2024 after the U.S. and Australia, shipped 79.54 million metric tons last year. The country plans to boost output from 77 mtpa to 142 mtpa by 2030, up from an earlier target of 126 mtpa.

Japan, the world’s second-largest LNG importer after China, brought in 65.89 million tons last year. While Qatar was once a top LNG supplier to Japan—delivering over 15 mtpa a decade ago—volumes declined following Japan's nuclear restart. JERA ended a 5.5 mtpa contract with Qatar in 2021. In 2024, Qatar shipped under 3 million tons to Japan, highlighting the potential significance of the new deal.