The strategic partnership between Oman and Japan has long been anchored in energy security, technological exchange, and mutual economic benefit. Since the early 1970s, when Oman first began exporting oil and later liquefied natural gas (LNG), Japan has viewed the sultanate as a reliable and moderate partner in a volatile region. Today, as both countries pursue ambitious national transformation agendas – Oman’s Vision 2040 and Japan’s Green Transformation (GX) – their energy relationship is evolving from one centered on hydrocarbon-based trade into a broader collaboration encompassing decarbonisation, hydrogen, and industrial diversification.

Energy has always defined Oman–Japan relations. For Japan, which imports nearly 95% of its primary energy, diversification and reliability of supply remain paramount. Oman, one of the smaller yet most stable energy exporters in the Gulf, emerged early as a dependable source of crude oil and LNG. The establishment of Oman LNG in 1994 laid the institutional foundation for long-term cooperation. Japanese firms – including Mitsui & Co, Itochu, and Osaka Gas – have participated as shareholders and off-takers since the plant’s inception, creating an enduring partnership that combines commercial pragmatism with technological depth.

Deepening LNG trade and low-carbon projects

In December 2022, Oman LNG signed term-sheet agreements with JERA Co, Mitsui & Co, and Itochu Corporation for a combined 2.35mn tonnes per annum (mtpa) of LNG supplies to Japan beginning in 2025 for roughly ten years. Within that, JERA’s share amounts to about 0.8 mtpa, or 12 cargoes annually. These contracts reaffirm Japan’s confidence in Oman’s reliability while ensuring the sultanate a stable demand base as it implements economic diversification measures under Vision 2040.

Trade between the two nations remains dominated by hydrocarbons, yet its structure is gradually shifting. LNG accounts for roughly 55% of total trade value, followed by crude oil (25%), petrochemicals (15%), and emerging hydrogen-related projects (5%). This changing balance illustrates both the persistence of traditional energy flows and the early emergence of low-carbon cooperation.

As the global energy transition accelerates, Oman and Japan are aligning policies to support decarbonisation and innovation. Oman’s National Hydrogen Strategy (2023) aims to position the country among the world’s top ten hydrogen exporters by 2030, producing up to one million tonnes of green hydrogen annually. Japan’s Seventh Strategic Energy Plan similarly targets three million tonnes of hydrogen consumption by 2030, while expanding imports of ammonia for co-firing in power generation. These complementary trajectories naturally draw Muscat and Tokyo closer in policy and investment terms.

Technology, investment and industrial collaboration

In March 2024, Oman LNG and Japan’s Hitachi Zosen Corporation signed a memorandum of understanding to develop methanation technology that converts hydrogen and CO₂ into synthetic methane for cleaner LNG production. The initiative – one of the first in the Middle East – signifies a shift from conventional fuel trade toward joint technological innovation. It also dovetails with Japan’s Asia Zero Emission Community (AZEC) and GX strategies, which promote regional platforms for green finance, carbon management, and cross-border technology sharing.

Oman’s geographic location and expanding industrial base provide a practical foundation for these efforts. Duqm Special Economic Zone and Sohar Port have become magnets for Japanese participation. Mitsui and OQ Group have developed downstream petrochemical ventures, while Marubeni and J-Power are conducting feasibility studies on green-ammonia projects in Duqm and Salalah. Oman LNG is also planning a fourth liquefaction train to boost liquefaction capacity to 15.2 mtpa by 2029, with Japanese engineering firms expected to play major roles. Such projects connect Vision 2040’s industrial-diversification priorities with Japan’s long-term need for secure, low-carbon energy.

In 2024, Oman LNG renewed long-term supply agreements with its shareholders, including Japanese partners – making Japan the largest export destination for Omani LNG. The new contracts secure approximately seven million tonnes per annum (mtpa) of LNG for the period 2024–2034, underscoring the strength and resilience of the partnership as both countries transition toward cleaner energy pathways.

Beyond economics, the Oman–Japan relationship holds significant diplomatic and strategic value. Oman’s foreign policy – often mischaracterised as mere neutrality – is in fact an actively committed to principles of peace and security. Guided by a tradition of balanced engagement and inclusive dialogue, Muscat positions itself as a constructive participant in the international community rather than a passive observer. For Tokyo, this makes Oman a politically stable and credible partner in a turbulent region.

Given Japan’s reliance on maritime energy routes, Oman’s strategic ports on the Arabian Sea and Indian Ocean serve as a southern anchor for its Indo-Pacific supply chain. This geoeconomic complementarity aligns Oman’s Vision 2040 logistics pillar with Japan’s Free and Open Indo-Pacific (FOIP) vision, linking Gulf resources to East Asian markets through sustainable and secure sea-lane cooperation.

As both countries prepare for COP29 and COP30, they can present a credible model of practical decarbonisation that balances industrial growth with environmental stewardship. Japan’s financial and technological participation in Omani hydrogen projects shows how Gulf–Asia cooperation contributes directly to global climate objectives. At the same time, Oman’s regulatory clarity and investor-friendly frameworks, particularly through Hydrom, attract institutional confidence from Japan’s public lenders such as JBIC, JOGMEC, and NEXI, which increasingly channel green-finance instruments toward Gulf-based initiatives.

Vision 2040 emphasises knowledge creation and human-capital development, and Japan’s advanced capabilities in hydrogen engineering, digital infrastructure, and energy efficiency can accelerate this goal through training programs, exchange fellowships, and technical partnerships. A bilateral innovation platform focused on clean-energy technologies, maritime decarbonisation, and carbon-capture utilisation would reinforce industrial integration while supporting Oman’s drive toward a high-value, knowledge-based economy.

Complementary partners

The convergence between Vision 2040 and Japan’s GX strategy is more than symbolic. Both seek to create inclusive growth models that align economic diversification with carbon neutrality. Oman Vision 2040 focuses on building a sustainable post-hydrocarbon economy centred on innovation, while GX envisions mobilising Japan’s industry and finance sectors for global green investment. This symmetry allows the two countries to act as complementary partners: Oman provides the physical landscape and renewable potential, and Japan contributes the technology, capital, and project-management expertise required for large-scale implementation.

Equally important is the rise of intellectual and institutional collaboration. Think tanks such as the Gulf Research Center and the Japan Institute of International Affairs (JIIA) play an expanding role in translating strategic frameworks into actionable cooperation. Joint research on energy security, supply-chain resilience, and hydrogen certification standards can support evidence-based policymaking. Academic exchanges between Omani universities and Japanese research institutes will further strengthen human capacity and mutual understanding. This “knowledge diplomacy” adds analytical depth to bilateral relations and aligns with Vision 2040’s innovation pillar and Japan’s science-and-technology diplomacy agenda.

According to H E Dr Mohamed Said al Busaidi, Ambassador of the Sultanate of Oman to Japan, “Oman’s collaboration with Japan reflects our shared commitment to innovation in the energy sector – from LNG to hydrogen and low-carbon technologies. This relationship stands as a model of how economic diversification and sustainability can advance hand in hand.” His words capture the spirit of a relationship defined by trust, innovation, and pragmatic vision.

Yet challenges remain. Cost competitiveness for hydrogen and ammonia exports hinges on continued declines in renewable-power costs and the scaling of desalinated-water infrastructure for electrolysis. For Japan, developing shipping, storage, and end-use systems for these new fuels requires sustained investment and regulatory adaptation. Concessional financing, risk guarantees, and coordinated policy frameworks will therefore be vital to bring projects to commercial maturity.

Bilateral policy coordination is already improving. Regular energy dialogues between Oman’s Ministry of Energy and Minerals and Japan’s Ministry of Economy, Trade and Industry (METI) have enhanced information exchange on investment incentives, renewable-energy zoning, and carbon-market mechanisms. Industry-to-industry consultations between OQ Group, Oman LNG, and Japanese corporations foster practical alignment on project timelines and regulatory standards.

Shaping Gulf–Asia energy relations

The broader significance of the Oman–Japan partnership lies in how it reflects the changing structure of Gulf–Asia energy relations. What was once a primarily transactional hydrocarbons relationship is evolving into a multidimensional framework integrating trade, investment, and technology cooperation. The partnership illustrates the growing interdependence of producers and consumers in an era of energy transition, where stability, diversification, and innovation increasingly define national interests.

For Oman, collaboration with Japan offers a pathway to advance its Vision 2040 objectives through access to technology, financing mechanisms, and industrial expertise necessary to support new-energy ventures. For Japan, the partnership reinforces its strategy of building resilient supply chains and secure access to alternative fuels while deepening its engagement with the Gulf region as part of a broader Indo-Pacific approach.

The long-term success of this cooperation will depend on how effectively both countries can institutionalise these emerging frameworks. Policy coordination, regulatory consistency, and commercially viable project design will be essential to sustain momentum. Beyond bilateral cooperation, Oman and Japan may also find opportunities to align within regional and multilateral frameworks – such as AZEC and the G7–GCC dialogues – to ensure their initiatives contribute to broader global decarbonisation goals.

From a broader perspective, the Oman–Japan energy partnership represents an important case study of how producer–consumer relations in the Gulf–Asia corridor are adapting to structural changes in global energy systems. Its importance lies less in symbolic goodwill than in its pragmatic potential to link technology, finance, and policy innovation in support of sustainable, long-term growth.

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