Japan is in talks with Qatar to purchase gas in order to diversify its energy sources. Multiple importers are discussing the procurement of LNG from Qatar for long periods, but the price may be too high for Japan.
The invasion of Ukraine has prompted Japan to reassess its energy security, as it has been a significant importer of Russian gas for many years. Japan is now seeking alternative gas suppliers, with Qatar being a prominent contender due to its vast gas reserves and existing LNG exports.
However, Qatar’s LNG comes at a high price, which has been increasing in recent years and currently stands at a record high.
This high price could pose affordability challenges for Japan if it decides to buy LNG from Qatar. The possibility of Japan reaching a long-term gas deal with Qatar is still uncertain, but the ongoing talks indicate Japan’s commitment to diversifying its energy sources.
Here are some additional details about the talks between Japan and Qatar:
- The talks are being led by the Japan Gas Association and QatarEnergy.
- The two sides are discussing a potential deal that would see Japan import LNG from Qatar for up to 30 years.
- The price of LNG is a major sticking point in the talks. Japan is hoping to get a lower price than Qatar is currently offering.
- The talks are expected to continue in the coming months.
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