QatarEnergy secures long-term naphtha supply deal with Japan's Idemitsu Kosan

QatarEnergy, Qatar's state-owned energy giant, has signed a major ten-year agreement to supply naphtha to Japan's Idemitsu Kosan Co. Ltd. This "landmark" deal, as termed by both parties, involves delivering up to six million tons of naphtha to Japan, starting in July 2024.

Naphtha, a critical component in producing various petrochemicals and fuels, forms the backbone of this agreement. The deal not only strengthens the nearly 50-year partnership between QatarEnergy and Idemitsu Kosan, a leading Japanese refiner and petrochemical company, but also signifies a significant development for both economies.

Saad Sherida Al-Kaabi, Minister of State for Energy Affairs in Qatar and CEO of QatarEnergy, expressed his delight: "We are delighted to further strengthen almost 50-years of partnership with Idemitsu, the leading Japanese refining and petrochemicals company, with this landmark agreement, which will bring further benefits to both sides. I would like to thank the working teams from both Idemitsu and QatarEnergy for their hard work and dedication to conclude this important agreement."

Founded in 1911, Idemitsu Kosan is a major force in Japan's energy sector. With a global presence spanning 64 offices across 20 countries, the company plays a vital role in supplying the resources and materials that fuel modern industry and lifestyles.

This strategic agreement guarantees Idemitsu Kosan a stable supply of naphtha for the next decade, while QatarEnergy secures a reliable customer base for its product. The deal strengthens the existing ties between the two energy giants and is expected to have a positive ripple effect on both economies. Analysts believe this agreement could potentially influence global naphtha prices, particularly in the Asian market.

Experts also suggest this deal could pave the way for further collaboration between QatarEnergy and Idemitsu Kosan in other energy sectors. Qatar, a leading liquefied natural gas (LNG) exporter, could explore future partnerships with Idemitsu Kosan for LNG supplies, further solidifying their position as major players in the global energy landscape.