Japan in talks to buy gas from Qatar

Japan’s natural gas buyers are in talks about new contracts with Qatar to ensure Tokyo’s energy security. According to people familiar with the talks, the LNG deals negotiated by Japanese companies with Qatar span several decades, while the Gulf state is increasing production. The people, who asked not to disclose their identities because the details were private, said Doha was currently offering prices deemed too high by Japanese companies, a major problem that could ultimately hinder talks.

Qatar Energy State-Owned Company did not respond to a request for comment via email.

Country contracts are very stringent compared to other gas exporters, as they do not allow shipments to be easily resold or diverted to other destinations when there is no need for shipment within the original importing State, citing the East’s economy.

This renewed interest in Qatar follows Japan’s energy crisis last year, prompting Tokyo to urge buyers to secure supplies and invest in new projects to avoid any future shortages. During the G7 summit held earlier in 2023, Japan and Germany urged the group to include a statement calling for “leaving the door open” to government investments in gas.