Malysia’s Petronas and Japan's JERA have signed a new long-term liquefied natural gas (LNG) supply agreement that will extend their partnership into the 2040s.
Under the agreement, Petronas, through its wholly owned subsidiary Petronas LNG (PLL), will supply up to approximately 2 million tonnes per annum of LNG to JERA over a 20-year period beginning in 2028.
The deal extends a relationship dating back to 1983, when Malaysia delivered its first LNG cargo to Japan.
Petronas said the agreement reflects a shift from traditional point-to-point LNG contracts toward a more flexible supply arrangement and reinforces its position as a supplier to Japan, one of the world's largest LNG importing markets.
LNG under the contract will be transported using Petronas' new generation of 174,000-cubic-meter LNG carriers, which are designed to meet enhanced International Maritime Organization emissions standards.
The agreement aligns with Japan's evolving energy requirements under its 7th Strategic Energy Plan, which seeks to balance energy security, economic efficiency and environmental objectives.
“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,” said Datuk Adif Zulkifli.
Petronas said the contract strengthens its position in Asia's LNG market and supports its strategy of providing long-term supply solutions to customers seeking both energy security and lower-carbon energy options.
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