JERA Sees LNG Prices Firm as Qatar Repairs Drag On

Japan's largest liquefied natural gas (LNG) buyer and top power generator, JERA, expects LNG prices to remain firm in the near term due to ongoing repairs in Qatar and Europe's need to rebuild stocks ahead of winter.

According to JERA Chairman and Global CEO Yukio Kani, restoring Qatar's damaged facilities will take more than two to three years. This means that European nations will continue to rely on spot market supplies, supporting demand and keeping prices stable.

Kani noted that European LNG inventories remain low, and replenishing them ahead of winter is crucial. If Europe follows through with plans to avoid Russian gas imports, it will need to secure additional LNG supplies from the global market.

JERA is also exploring ways to supply electricity directly to data centres in Japan, where demand is expected to grow rapidly. The utility is collaborating with several operators on long-term power purchase agreements under a model that involves building data centres adjacent to power plants.