The head of JERA, Japan’s largest electricity producer, Satoshi Onoda, said Thursday that he will not renew his long-term contracts in the Qatargas 1 liquefied natural gas project, which expire next month.
Onoda said at a press conference: “It has become difficult for us to continue in large long-term contracts due to developments in the global liquefied natural gas market and the global trend towards decarbonisation and liberalization of local electricity and gas markets. . “
A spokesperson for JERA said the company, a joint venture for the production of fuel and energy between Tokyo Electric Holding Company and Chubu Electric Power Company, imports 5.5 million tons per year from the project through long-term contracts that include a 25-year agreement signed by Chubu and Qatargas in 1997.
JERA, one of the largest LNG buyers in the world, which purchased around 30 million tons in the fiscal year ending March 2021, imports nearly 20% of total natural gas imports from the Qatargas 1 project.
Onoda said he wanted to maintain good relations with Qatar due to the continuation of some contracts for other terms, in addition to the fact that Doha could be a partner. in types of clean fuels such as ammonia and hydrogen.
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