QatarEnergy signs naphtha deal with Japanese refiner

Reuters/Mohammed Dabbous

QatarEnergy will supply six million tonnes of naphtha to Japan over the next 10 years starting in July.

The state-backed gas producer has signed a supply deal with Idemitsu Kosan Company, a Japanese refining and petrochemicals company.

Naphtha is a flammable liquid hydrocarbon mixture commonly used as a solvent. It can also be used in cleaning fluids, to make varnishes, to dilute paint, or as a fuel for camp stoves.

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QatarEnergy president and CEO Saad Sherida Al Kaabi said the agreement will strengthen the 50-year partnership with Idemitsu, bringing further benefits to both sides.

The value of the deal was not disclosed.

Idemitsu Kosan was founded in 1911 and has 64 offices in 20 countries and regions worldwide.

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Al Kaabi, who is also the energy minister, last month said he is bullish on global demand for liquefied natural gas (LNG) and his country is likely to push its production levels beyond those already targeted for 2030.

“Technical capability is going to be assessed, and if there is more [gas], we probably will do more,” he told the Qatar Economic Forum in Doha.

Qatar, one of the world’s top LNG exporters, announced plans in February for an 85 percent expansion in LNG production from its North field’s current 77 million tonnes per year (mpta) to 142 mpta by 2030.

Previously, the company was planning to expand up to 126 mpta.