Meed | QatarEnergy secures Japan naphtha supply deal

QatarEnergy secures Japan naphtha supply deal

4 June 2024

QatarEnergy has entered into a long-term agreement with Japan-based Idemitsu Kosan Company to supply up to 6 million tonnes a year (t/y) of naphtha.

The agreement lasts 10 years, and deliveries will start in July.

Idemitsu Kosan, founded in 1911, is one of Japan’s largest energy and resource companies.

Prior to winning this key supply order with the Japanese firm, QatarEnergy recently secured a long-term agreement with US-based fertiliser producer and supplier Koch Fertilizer to supply urea.

The 15-year supply agreement, starting in July, stipulates the supply of up to 740,000 t/y of urea to Koch Fertilizer.

ALSO READ: Adnoc delivers low-carbon ammonia cargo to Japan

Meanwhile, Qatar’s liquefied natural gas (LNG) expansion projects are moving ahead and are on track to achieve an increased production capacity of 142 million tonnes a year (t/y), Saad Sherida Al Kaabi, the country’s minister of state for energy affairs and president and CEO of QatarEnergy, recently said.

In addition, “with 18 million tonnes per annum coming from our [Golden Pass] LNG project in Texas, Qatar will be doubling its LNG production capacity in the next few years”, Al Kaabi said at the Qatar Economic Forum in Doha on 15 May.

He made the remarks during a panel discussion with Patrick Pouyanne, chairman and CEO of France’s TotalEnergies, and Darren Woods, executive chairman and CEO of US-based ExxonMobil.

QatarEnergy is understood to have spent almost $30bn on the two phases of the North Field LNG expansion programme, North Field East and North Field South, which will increase its LNG production capacity from 77.5 million t/y to 126 million t/y by 2028.

Engineering, procurement and construction (EPC) work on the two projects is progressing.

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Indrajit Sen