Japan's Jera Signs 27-Yr LNG Supply Pact With QatarEnergy

TOKYO, Feb 14 (Bernama-Kyodo) -- Major Japanese energy company Jera Co. has signed a 27-year agreement with Doha's state-run QatarEnergy to secure 3 million tonnes of liquefied natural gas per year from 2028, as it seeks to diversify suppliers to meet an expected growth in demand, Kyodo News reported. 

Jera said it hopes to contribute to Japan's long-term energy security, with electricity demand set to be driven up by the expansion of data centres, semiconductor manufacturing and other energy-intensive infrastructure.

"Jera remains committed to building a resilient, well-balanced LNG procurement portfolio by sourcing from the Middle East, Asia-Pacific, the United States, and other regions," the company, one of the world's largest LNG buyers, said in a statement last week.

LNG emits less greenhouse gas than coal and oil when burnt.

Thermal power generation, fuelled in part by LNG, still plays a role in Japan's energy mix targets despite the country's push for nuclear and renewables. It is projected to stay at about 30 to 40 per cent in fiscal 2040, from around 68.6 per cent in fiscal 2023, according to the latest energy plan.

In 2023, Japan imported 66.15 million tonnes of LNG, with 4.4 per cent from Qatar. Australia was the largest supplier at 41.6 per cent, followed by Malaysia at 15.6 per cent.

Separately, Japan's Ministry of Economy, Trade and Industry has signed a memorandum of understanding with Jera and QatarEnergy, under which Tokyo can request additional procurements of LNG supplies in response to natural disasters and emergencies deemed as threatening to the country's energy security.

Established in 2015 as a joint venture between Tokyo Electric Power Company Holdings Inc. and Chubu Electric Power Co., Jera produces a third of Japan's electricity.

-- BERNAMA-KYODO