TOKYO: Petroliam Nasional Bhd (PETRONAS) and JERA Co Inc. have signed a new long-term liquefied natural gas (LNG) supply agreement, extending their partnership into the 2040s.
Under the agreement, PETRONAS, through its wholly owned subsidiary PETRONAS LNG Ltd (PLL), will supply up to 2 million tonnes per annum (MTPA) of LNG to JERA over a 20-year period beginning in 2028, extending its long-standing supply relationship with Japan.
In a statement, PETRONAS said the agreement deepens a relationship that dates to 1983, when Malaysia shipped its first LNG cargo to Japan—laying the foundation for a trusted energy partnership that remains central to Japan’s energy security.
The agreement marks a shift from traditional point-to-point LNG contracts to a more flexible supply arrangement, broadening PETRONAS' LNG supply capabilities.
LNG will be delivered using PETRONAS’ new generation of 174,000-cubic-meter LNG carriers, designed to comply with the International Maritime Organization’s enhanced emissions standards, supporting more efficient and lower-emission operations.
PETRONAS continues to advance its commercial approach to meet Japan’s evolving requirements in line with the 7th Strategic Energy Plan to ensure a stable energy supply, while improving economic efficiency, and environmental priorities as demand evolves.
PETRONAS executive vice president and chief executive officer of gas and maritime business Datuk Adif Zulkifli, said the agreement builds on the long-standing relationship between the two companies.
"We value the strong partnership we have built with JERA over the decades, underpinned by mutual trust and a shared focus on reliability.
“We look forward to building on this foundation as we continue to support Japan’s evolving energy needs," he said.
The agreement comes amid rising LNG demand, supply security concerns, price volatility and changing consumption patterns in global energy markets.
It also extends PETRONAS' long-term LNG supply relationship with Japan and supports the company's presence in one of Asia's largest gas markets. PETRONAS said it will continue supplying LNG from its global portfolio to support customers' energy security needs.
