Montreal (Oil Monster): Malaysia’s state-owned energy company Petronas has signed a long-term liquefied natural gas (LNG) supply agreement with Japanese power producer JERA Co. Inc., a deal aimed at reinforcing Japan’s energy security through stable fuel supplies amid heightened geopolitical uncertainty.
The agreement formalizes a Memorandum of Understanding signed by the two companies during the Energy Asia forum in Kuala Lumpur in June last year. The new contract strengthens a strategic energy relationship between Malaysia and Japan at a time when Asian buyers continue to prioritize supply security and long-term contracting.
Under the terms of the deal, Petronas will supply JERA with up to approximately 2 million metric tons of LNG annually for 20 years beginning in 2028. The LNG will be sourced primarily from Malaysia, providing JERA with a stable long-term procurement channel for power generation needs.
Petronas said the cargoes will be delivered using its new generation of 174,000-cubic-meter LNG carriers, a move that supports lower-emission transportation. The shipping component adds an operational and environmental dimension to the agreement beyond simple supply volumes.
Petronas said the contract reflects evolving market requirements and further strengthens its position as a reliable global LNG supplier. For JERA, the agreement represents a strategic step toward securing dependable fuel supplies as natural gas continues to play an important role in its power generation portfolio.
In addition to deepening Malaysia-Japan energy ties, the agreement is expected to support longer-term LNG market stability across the Asia-Pacific region. The deal underscores the importance of long-duration contracts in balancing energy security, procurement visibility, and regional supply planning.
Courtesy: OilMonster Energy News
The agreement runs for 20 years, with supplies scheduled to begin in 2028.
Petronas will supply up to approximately 2 million metric tons of LNG annually under the contract.
The LNG will be sourced primarily from Malaysia, according to the agreement details.
The cargoes will be delivered using Petronas’ new generation of 174,000-cubic-meter LNG carriers.
The deal is designed to strengthen Japan’s energy security by locking in stable long-term LNG supplies.
