A gas platform is pictured in the Gulf near Qatar's territorial waters in 2011
A gas platform is pictured in the Gulf near Qatar's territorial waters in 2011. Qatargas announced on Wednesday it has signed a long-term deal to ship 0.5 million tonnes of liquefied natural gas annually to Japan's Kansai Electric Power Company. © Atta Kenare - AFP/File
A gas platform is pictured in the Gulf near Qatar's territorial waters in 2011
AFP
Last updated: September 26, 2012

Qatar to sell gas to Japan's KEPCO

Qatargas announced on Wednesday it has signed a long-term deal to ship 0.5 million tonnes of liquefied natural gas annually to Japan's Kansai Electric Power Company (KEPCO).

The first long-term bilateral agreement between Qatar's gas operator and KEPCO will see Qatargas 3 delivering 0.5 million tonnes per annum (MTA) of LNG for a 15 years starting in 2013, Qatargas said in a statement.

KEPCO, Japan's second largest electricity company, is one of the original eight Japanese customers which signed a multi-party contract with Qatargas 1 back in 1994, the statement said.

In June, Qatargas 1 signed a similar long-term deal with Japan's Tokyo Electric Power Company (TEPCO) to buy one million tonnes annually.

The Gulf emirate, which holds the world's third-largest gas reserves, celebrated in 2010 raising its LNG production capacity to 77 million tonnes a year, boosting its position as the world's largest producer.

Japanese power companies are keeping thermal power plants online while shutting off nuclear plants because of tense public opposition.

On March 11, a 9.0-magnitude quake rocked Japan's Fukushima Daiichi plant. The resulting 14-metre (46-foot) ocean wave knocked out the power supply, the reactor cooling systems and back-up diesel generators.

With society's scars from the meltdowns at Fukushima refusing to heal, there has been a groundswell of public opposition to nuclear power, which once provided a third of energy-hungry Japan's electricity.

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