Japan's trade and industry ministry Meti on 3 February signed a non-binding initial agreement with the country's largest power producer Jera and state-owned QatarEnergy (QE) to establish a trilateral co-operation framework enabling the supply of additional LNG cargoes during emergency situations.
The deal allows Meti to request QE to consider supplying additional LNG to Japanese buyers, including Jera, if tight global LNG markets or large-scale domestic disruptions threaten Japan's energy stability. The parties will then consult on appropriate response measures.
Qatar, one of the world's largest LNG producers, has been a key supplier to Japanese utilities for nearly three decades. It provided emergency LNG cargoes to Japan following the Fukushima nuclear disaster in 2011 to help mitigate the impact of nuclear reactor shutdowns — an experience that helped shape the new framework, Jera said.
These potential buffer LNG volumes from Qatar are in addition to a recent 3mn t/yr long-term contract signed by Jera and QE. The firms signed a 27-year supply agreement on 3 February to buy up to 3mn t/yr of LNG from 2028. The LNG will be supplied on a delivered ex-ship (des) basis, likely from the 16mn t/yr North Field South expansion, which is due to start production in 2027. Jera has declined to comment on the price formula and destination flexibility.
Jera also currently holds a term contract with state-owned Qatargas to purchase 700,000 t/yr of LNG through 2028. This deal was originally signed in 2012 by Jera's 50pc shareholder Chubu Electric Power for 15 years, covering 1mn t/yr from 2013-17 and 700,000 t/yr for 2018-28. The company used to have a term contract for 5.5mn t/yr from Qatar, which expired in December 2021.
Japan received 3.4mn t of LNG from Qatar in 2025, which accounted for 5.3pc of the country's total imports, according to data from the finance ministry. This is down from 18.4pc in 2013.
Jera is gearing up to build an LNG portfolio that exceeds its downstream obligations, because underestimating demand and being forced to buy spot cargoes would pose a greater risk. The company aims to maintain its LNG handling volumes at no less than 35mn t/yr with diversified supply sources until the April 2035-March 2036 fiscal year. It signed multiple deals for 5.5mn t/yr of US LNG in 2025, with some of these deals extending to 2050.
LNG could continue playing a vital role in ensuring stable electricity supplies in Japan, even during energy transition toward the 2050 net-zero emissions goal, because the rapid adoption of artificial intelligence would boost power demand. Renewable capacity is expected to increase, but weather-dependent solar and wind output still require back-up thermal capacity. It is also unclear how many nuclear reactors will return over the next decade.
