Japanese Prime Minister Fumio Kishida concluded his tour of the GCC on Tuesday with a visit to Qatar, where talks focused on securing energy supplies and promoting high technology from Japan. During his meeting with Emir Sheikh Tamim bin Hamad AlThani, Kishida agreed to enhance energy ties and economic cooperation between the two nations.
A key focus of the talks was Japan’s aim to secure new liquefied natural gas (LNG) supplies from Qatar. Although no new LNG deals were announced during the visit, Kishida emphasized the vital role of LNG in Asia’s realistic energy transition, underlining its importance for the G7 as well. This comes as demand for LNG has intensified as Europe is seeking alternative gas sources to replace supplies from Russia following the invasion of Ukraine.
Japan’s high dependence on oil and gas imports has driven its efforts to strengthen ties with the Gulf Cooperation Council (GCC) countries. Notably, Japan did not renew several long-term LNG contracts with Qatar in 2021 and 2022. In contrast, other Asian buyers, particularly China, have signed long-term LNG supply contracts with Qatar, indicating a shift in the LNG market dynamics.
Read more: Saudi, Japan sign agreements to enhance cooperation in energy sector
During his visit to Saudi Arabia and the UAE earlier in the Gulf tour, Kishida focused on securing oil supplies for Japan while exploring clean energy collaborations. The UAE signed multiple agreements and memoranda of understanding with Japan to bolster economic trade and investment in various fields, including advanced technology, artificial intelligence, space, and environmental conservation.
Japan’s alignment with Gulf energy exporters on clean energy transition has further strengthened their collaboration. While promoting renewable energy, both Japan and the GCC recognize the need to explore technologies such as carbon capture and utilization and blue ammonia as alternatives to reduce carbon emissions.
In light of their shared interests, Japan and the GCC also announced the resumption of talks on a free trade agreement. This move aims to foster stronger economic ties and enhance cooperation in various sectors. With over 90 percent of its oil supply dependent on the Middle East, Japan seeks to diversify its energy sources and engage in technology-sharing collaborations in order to facilitate the decarbonization and economic diversification of the region.
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