Japan's JERA signs major 27-year gas deal with Qatar

BSS
Published On: 04 Feb 2026, 14:23

    
TOKYO, Feb 4, 2026 (BSS/AFP) - Japanese energy firm JERA said Tuesday it had agreed a 27-year deal to buy gas from Qatar, as Tokyo comes under pressure to reduce Russian imports while ensuring enough supplies for power-hungry data centres and AI.

JERA said it signed a long-term agreement with QatarEnergy to purchase 3.0 million tons of liquefied natural gas (LNG) annually for 27 years from 2028.

The Japanese company did not disclose financial details, but the Nikkei business daily said it could be worth as much as 250 billion yen ($1.6 billion) a year.

Resource-poor Japan relies heavily on imported energy, much of it from the Middle East, to generate electricity.

At the same time it is moving to increase the share of nuclear power in its energy generation, 15 years after the Fukushima catastrophe.

Japan is also facing a predicted rise in electricity demand from power-hungry data centres for use in artificial intelligence technologies.

The administration of President Donald Trump has also encouraged Japan to buy more US energy and to reduce purchases of Russian gas.

JERA said in June it had finalised 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States -- triple the current amount.

And in September the firm said it would consider buying LNG from a mooted major gas project in Alaska that has been championed by Trump.

"As Japan expects an increase in electricity demand driven by the expansion of data centres, semiconductor manufacturing, and other energy-intensive infrastructure, gas-fired power generation will continue to play a critical role in maintaining Japan's energy stability," JERA said in a statement.

Through 2021, JERA used to procure as much as 6.2 million tons of LNG a year from Qatar, but the volume dropped to 700,000 tons a year as the two sides negotiated prices and other conditions, Japanese broadcaster NHK said.

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