LNG Prices to Stay Firm Despite Qatar Repairs and European Stock Rebuild

JERA's Chairman and Global CEO Yukio Kani predicts that liquefied natural gas (LNG) prices will remain relatively firm in the near term. This is due to several factors, including the time it takes to restore Qatar's LNG facilities damaged during the Iran war and Europe's need to replenish stocks ahead of winter.

Kani estimates that restoring some of Qatar's LNG facilities will take more than two to three years. Meanwhile, European LNG inventories remain low, and the region will need to secure additional supplies from the spot market if it follows through on plans to avoid Russian gas imports.

JERA is Japan's largest LNG buyer and top power generator, and Kani believes that continued demand for LNG in Europe will support prices. He also mentioned that data centre operators are showing strong interest in long-term power purchase agreements under a model where data centres are built adjacent to power plants and supplied with electricity directly.