Japan resumes long-term LNG contracts amid surging energy demand

Japan is re-emerging as a major market for long-term liquefied natural gas (LNG) contracts, driven by growing electricity demand from artificial intelligence and rising costs for renewable energy infrastructure, Reuters reports.

Yukio Kani, the CEO of JERA, Japan's top power generator, noted that analysts had previously expected a decline in electricity demand. Nevertheless, the rapid expansion of data centers has forced them to revise their projections upward.

With AI facilities requiring substantial power, the Japanese government now recognizes LNG as a critical energy source, even though the country maintains its commitment to achieve net-zero emissions by 2050. Morgan Stanley forecasts Japan's fuel imports will rise from 66 million to 78 million tons by 2030.

According to Reuters sources, JERA and Mitsui & Co. are currently negotiating long-term LNG supply agreements with QatarEnergy as part of its Northern Field expansion project.