Japanese Prime Minister Fumio Kishida has consented to bolster energy connections and enhance economic cooperation with Qatar, a major gas-producing nation. During his visit, Kishida prioritized the acquisition of energy resources and the promotion of Japanese high technology.
Japan and Qatar upgrade energy ties: In a meeting with the Emir, Sheikh Tamim bin Hamad al-Thani, Kishida addressed the request from Japan’s gas lobby to secure new supplies of liquefied natural gas (LNG) from Qatar.
The leaders mutually agreed to elevate their countries’ relationship from comprehensive to strategic, with a particular emphasis on areas such as energy, economy, defense, security, and academic exchange, as stated by the emir’s office.
On Tuesday, the two nations refrained from announcing any new LNG agreements. However, according to a statement from the Japanese foreign ministry, Prime Minister Kishida conveyed to Sheikh Tamim the vital role of LNG in facilitating a realistic energy transition in Asia.
Furthermore, Kishida underscored that Japan had successfully garnered the consensus of the G7 countries regarding the significance of investments in natural gas and LNG. This consensus was based on the shared understanding that long-term investments in such energy sources are essential for the G7 nations.
Since the Russian invasion of Ukraine in February 2022, competition for LNG has intensified, particularly in Europe, where countries need substantial quantities to replace gas previously acquired via pipelines from Russia.
“Japan’s Decision and Asian Buyers: Long-term LNG Contracts with Qatar”
In the meeting between the two leaders, Qatar’s minister of state for energy and the QatarEnergy CEO, along with other officials, were present, as mentioned in the Qatar statement.
Despite its heavy reliance on oil and gas imports, Japan chose not to renew several long-term LNG contracts with Qatar when they expired in 2021 and 2022. Consequently, this decision led to a significant reduction in gas imports from one of the world’s leading LNG exporters.
On the other hand, various other Asian buyers have taken a different approach and entered into long-term LNG supply agreements with Qatar. Notably, Chinese importers secured a pair of record-length 27-year deals for gas from Doha’s North Field expansion. This expansion project is set to boost the Gulf Arab state’s gas production by over 60%.