Petronas Secures Long-Term LNG Supply Deal with Japan’s JERA Amid Energy Market Volatility
TOKYO: Petroliam Nasional Berhad has signed a 20-year liquefied natural gas (LNG) supply agreement with Japanese energy giant JERA Co., Inc., reinforcing the long-standing energy partnership between Malaysia and Japan.
Under the agreement, Petronas will supply two million tonnes of LNG annually to JERA beginning in 2028, providing a stable long-term energy source for Japan as global energy markets face growing uncertainty.
The announcement was made during Prime Minister Anwar Ibrahim’s working visit to Tokyo, where discussions focused on strengthening bilateral cooperation in energy, trade, technology and investment.
Japanese Prime Minister Sanae Takaichi described the agreement as strategically important at a time when geopolitical tensions and supply disruptions are placing increasing pressure on global energy markets.
She said Malaysia’s reputation as a dependable LNG supplier makes it an important partner in Japan’s efforts to strengthen energy security and ensure reliable fuel supplies for the long term.
According to Takaichi, the global energy landscape has become increasingly unpredictable, making stable partnerships with trusted suppliers more critical than ever.
The agreement comes as Japan seeks to bolster its LNG reserves and diversify supply sources amid concerns over potential shortages linked to international conflicts and market volatility.
Beyond LNG cooperation, Malaysia and Japan also agreed to enhance collaboration in securing fertiliser feedstock supplies and strengthening critical mineral supply chains.
These resources are becoming increasingly important as countries accelerate investments in advanced manufacturing, clean energy technologies and digital infrastructure.
Anwar said both nations are also exploring ways to expand bilateral trade settlements using the Malaysian ringgit and Japanese yen, reducing dependence on third-party currencies while strengthening economic ties.
He added that discussions covered a wide range of future-oriented sectors, including artificial intelligence, semiconductors, defence cooperation and energy transition initiatives.
The Prime Minister noted that Malaysia’s relationship with Japan is evolving beyond traditional trade and investment into strategic partnerships involving high-technology industries and sustainable development.
The long-term LNG agreement is expected to further strengthen Malaysia’s position as one of Asia-Pacific’s leading LNG exporters while supporting Japan’s efforts to maintain a secure and diversified energy supply for decades to come.
