Catar strengthens presence in the Japanese market with new long-term LNG agreement

SigmaBrain · 2026-02-14T18:15:47+00:00

Qatar seeks to regain its share of the Japanese LNG market after a drastic decline. It will sign a long-term contract with Jera, aiming for stability and expansion, with plans to nearly double its export capacity by 2030.

SigmaBrain

2026-02-14 18:15:47

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Energy is a global strategic game board, and Qatar is making a decisive move to regain lost ground. After years of significantly shrinking its market share in Japan, the Gulf nation is preparing to sign a long-term contract with Jera, Japan’s largest utility company, marking an important turnaround in fuel trade relations between the two countries.

The decline driving the strategy: understanding the market loss

The numbers tell the story clearly. In 2017, Qatar supplied approximately 10 million tons of LNG to Japan annually. Last year (2025), that volume had dropped sharply to just 3.3 million tons. Why? Japan, the second-largest LNG buyer in the world, diversified its supply sources, turning to more flexible options offered by competitors like the United States. For Qatar, this market erosion presents a challenge it cannot ignore, especially considering its ambitious global expansion plans.

QatarEnergy secures its position: terms of the new agreement

Qatar’s response comes through QatarEnergy, which will sign a contract providing approximately 3 million tons of LNG annually to Jera. Reports indicate the deal could be announced as soon as this week. Although the initial volume is modest compared to 2017 figures, the significance lies in stability. Long-term contracts like this offer predictability for both supplier and buyer, a factor increasingly valued in a volatile market.

The bigger strategy: global expansion and customer consolidation

While strengthening its presence in Japan, Qatar is simultaneously pursuing an ambitious expansion plan. The goal is to nearly double export capacity to 142 million tons by 2030. In this context, Jera and the Japanese market represent much more than an individual market—they are crucial pieces in a growth strategy that requires stable and reliable customers. By securing this agreement with Qatar, both Jera and Qatar signal mutual confidence in a long-lasting business relationship, essential for the success of Qatar’s global operations.

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