PETALING JAYA: Petroliam Nasional Bhd (PETRONAS) has agreed to supply up to two million tonnes of liquefied natural gas (LNG) per annum for a 20-year period beginning 2028 to Japan’s JERA Co Inc.
JERA is Japan’s largest power generation company.
The supply deal will carry the PETRONAS-JERA partnership into the 2040s, cementing one of Asia’s longest-running LNG relationships.
This reinforces PETRONAS’ position as a core supplier to Japan, one of the world’s largest LNG importers.
The agreement deepens a relationship that dates to 1983, when Malaysia shipped its first LNG cargo to Japan.
The LNG will be delivered using PETRONAS’ new generation of 174,000-cubic-meter LNG carriers, designed to comply with the International Maritime Organisation’s enhanced emissions standards, supporting more efficient and lower-emission operations.
In a statement, PETRONAS said the signing of this agreement signifies the transformation from traditional point-to-point LNG supply agreements to a more flexible LNG supply arrangement.
The agreement, which comes as Japan looks to beef up its energy reserves to cope with a global LNG crunch following the Iran war, was signed in Tokyo.
It was attended by PETRONAS executive vice-president and chief executive officer of gas and maritime business Datuk Adif Zulkifli, and JERA senior managing executive officer and chief low carbon fuel officer Ryosuke Tsugaru.
Separately, Reuters reported that Japanese Prime Minister Sanae Takaichi said cooperation with Malaysia, a stable supplier of LNG to Japan, has become increasingly important.
This was said at a press conference following a meeting with Prime Minister Datuk Seri Anwar Ibrahim.
Anwar is on a three-day working visit to Tokyo, where he has been meeting with government and industry officials.
According to Reuters, Malaysia and Japan also agreed to work together to ensure stable supplies of fertiliser feedstocks and strengthen critical mineral supply chains.
