Malaysia's PETRONAS, Japan's JERA extend LNG deal to 2040s

Under the agreement, PETRONAS, through its wholly owned subsidiary PETRONAS LNG Ltd. (PLL), will supply up to approximately 2 million tonnes per annum (MTPA) of LNG over a 20-year period starting in 2028. 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—laying the foundation for a trusted energy partnership that remains central to Japan’s energy security.

The parties commemorated the agreement in Tokyo, 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, Mr. Ryosuke Tsugaru.

The signing of this agreement signifies the transformation from traditional point-to-point LNG supply agreements to a more flexible LNG supply arrangement, which further underscores PETRONAS’ position as a reliable LNG supplier through the expansion of its 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 stable energy supply, while improving economic efficiency, and environment priorities as demand evolves.

Datuk Adif Zulkifli said: “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.

In an increasingly dynamic LNG market shaped by rising demand, supply security concerns, price volatility, and shifting consumption patterns, PETRONAS remains focused on delivering reliable, and tailored solutions, supporting our partners in strengthening energy security while advancing their transition ambitions.”

For PETRONAS, this long-term commitment reaffirms PETRONAS’ reputation as a trusted LNG partner to Japan, being one of Asia’s most vibrant gas markets. As Asia’s demand for cleaner energy continues to grow, PETRONAS remains committed to delivering reliable LNG from its global portfolio, supporting customers’ energy security today while enabling their pathways towards a lower-carbon future.

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ALCHEMPro News Desk (JP)