Qatar and Japan Forge a 10-Year Naphtha Supply Deal

QatarEnergy has entered into a 10-year agreement to supply naphtha to Japan's Marubeni, bolstering their enduring energy sector partnership. The deal was sealed by QatarEnergy CEO Saad Sherida Al-Kaabi in Tokyo, representing Qatar Petroleum for the Sale of Petroleum Products Company (QPSPP).

Al-Kaabi, who also serves as Qatar's Minister of State for Energy Affairs, held meetings with several Japanese energy officials during his visit to Japan. The agreement deepens the longstanding and mutually beneficial relationship between QatarEnergy and Marubeni Corporation, which spans several decades.

Naphtha is a hydrocarbon liquid mixture derived from crude oil distillation, encompassing various categories within its definition. The newly established agreement stipulates that QatarEnergy will annually supply Marubeni with 1.2 million tonnes of naphtha, commencing in October. This follows the conclusion of an initial five-year deal signed in 2018.

Marubeni holds a prominent role as one of QatarEnergy's key partners in the sector, participating in pivotal projects, including the Al-Kharsaah solar power plant and the Mesaieed power plant. The company has received "continuous and stable supplies of various grades" of naphtha from Doha since 1986. Japan, as one of the leading Asian buyers of liquefied natural gas (LNG), holds long-term contracts with Qatar.

Tokyo is the world's largest LNG purchaser, having imported 74,463,881 tonnes in 2020. It maintained this status as one of the leading LNG importers in 2021, surpassing China's imports.

It's important to highlight that Japan was Qatar's first LNG customer back in the late 1990s when Qatar initiated its initial sale and purchase agreement, procuring 4 tonnes of LNG annually from Japan's Chubu Electric.

During his recent visit to Tokyo, Qatar's energy minister engaged in "high-level discussions" with top energy partners, hinting at the potential expansion of the countries' longstanding energy ties.

Furthermore, in July, Japanese Prime Minister Kishida Fumio embarked on a regional tour that included visits to Qatar, Saudi Arabia, and the United Arab Emirates, with the oil and gas industry dominating the discussions. The stable supply of LNG and oil from Qatar has supported Japan's economic growth for many years, fostering a mutually beneficial relationship. Japanese companies have contributed significantly to the construction of LNG facilities in Qatar since 1990.

In an effort to secure a stable energy supply, Riyadh hosted a joint meeting between Japan and the Gulf Cooperation Council on September 7. Japan relies heavily on crude oil from the GCC, which accounts for over 90% of its supply.