QatarEnergy and Japan’s Idemitsu Kosan Sign Decade-Long Naphtha Supply Deal

QatarEnergy has secured a significant long-term agreement with Idemitsu Kosan Co. Ltd, under which it will supply up to six million tons of naphtha to Japan over the next decade, beginning in July 2024. This landmark deal highlights the deepening ties between the two companies, reinforcing a partnership that has spanned nearly five decades.

His Excellency Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, expressed his enthusiasm about the agreement. " We are thrilled to enhance our nearly 50-year partnership with Idemitsu, Japan's leading refining and petrochemicals company, through this landmark agreement, which will bring significant benefits to both parties. I extend my gratitude to the working teams from both Idemitsu and QatarEnergy for their hard work and dedication in finalizing this crucial agreement."

Founded in 1911, Idemitsu Kosan Co., Ltd. is one of Japan's largest energy and resource companies. The company operates 64 offices in 20 countries and regions worldwide, producing essential energy, resources, and materials that are vital to various industries and modern lifestyles.

The agreement between QatarEnergy and Idemitsu Kosan Co. Ltd. signifies a strategic move to secure a steady supply of naphtha, an essential feedstock in the petrochemical industry. Naphtha is used in the production of various chemicals, plastics, and synthetic materials, making it a crucial component in manufacturing and industrial processes.

This deal will not only ensure a stable supply of naphtha for Idemitsu Kosan's operations but also strengthen QatarEnergy's position as a key player in the global energy market. The partnership aligns with QatarEnergy's broader strategy to expand its market presence and foster long-term relationships with leading companies in the energy sector.

QatarEnergy, previously known as Qatar Petroleum (QP), is Qatar's state-owned petroleum company responsible for overseeing all facets of the nation's oil and gas operations. These operations encompass exploration, production, refining, transportation, and storage. The company manages the national oil pipeline network, transporting oil from various fields to the sole refinery and export terminals. Additionally, QatarEnergy operates an extensive offshore pipeline system, which facilitates the transportation of crude oil from offshore fields to Halul Island for processing and export. Onshore, most oil is routed to Umm Said for refining or export. Qatar's primary export terminals are located at Umm Said, Halul Island, and Ras Laffan. Refining activities are carried out at two facilities: the QatarEnergy Refinery in Umm Said and the Laffan Refinery in Ras Laffan.