The new LNG agreement between Qatar and Jordan changes the energy trade dynamics

Qatar is preparing to finalize a long-term strategic agreement with JERA, Japan’s largest utility company. This deal marks a significant turning point in the energy relations between the two countries, especially amid the increasing decline in supply over recent years. The signing of the agreement may be announced in the coming days.

Core of the Agreement: Large-Scale LNG Supplies

QatarEnergy commits to supplying JERA approximately 3 million tons of liquefied natural gas annually. This volume reestablishes a substantial part of its enduring position in the Japanese market. According to trade data, in 2025, Qatar delivered only 3.3 million tons of LNG to Japan, representing a drastic decrease from about 10 million tons in 2017. This supply crisis has forced Japan to seek more flexible options, particularly from suppliers like the United States.

Shift in Japan’s Energy Market Strategy

Japan, the second-largest LNG importer in the world, has gradually diversified its supply sources as traditional partners, including Qatar, have been unable to maintain previous volumes. The new agreement responds to these challenges and aims to stabilize LNG supply chains for this key Asian importer. This decision underscores the importance of long-term partnerships in the energy sector.

Qatar’s Ambitious Expansion Plans

Meanwhile, Qatar is implementing an aggressive strategy to expand its LNG production. The country plans to nearly double its export capacity, reaching 142 million tons annually by 2030. This transformation requires securing stable, long-term buyers to ensure the profitability of investments. The new agreement with JERA aligns perfectly with this growth strategy and positions Qatar at the forefront of the global LNG market in the coming years.