Japan’s JERA has agreed to procure up to nearly two million tonnes per annum (mtpa) of liquefied natural gas (LNG) from Petronas LNG over a 20-year period, beginning in 2028.
Petronas LNG is a subsidiary of Malaysian state-owned energy major Petronas.
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As per the sales and purchase agreement (SPA) signed by the parties, the LNG will mainly be sourced from Malaysia, which already serves as Japan’s second-largest LNG supplier.
The deal was commemorated in Tokyo with senior executives from both companies in attendance. It marks a further extension of a partnership that stretches back to 1983, when Malaysia delivered its first LNG cargo to Japan.
Petronas plans to utilise new 174,000m³ LNG carriers that meet updated International Maritime Organisation emissions standards for these deliveries.
The agreement comes at a time of heightened geopolitical risk affecting global LNG supply, prompting Japan to seek stable procurement strategies.
In Japan, factors such as ageing oil-fired power infrastructure and increased adoption of renewable energy have resulted in more pronounced seasonal fluctuations in LNG demand.
The new long-term deal aims to provide JERA with greater flexibility to respond to these variations and support energy security in the Japanese market.
JERA chief low carbon fuel officer Ryosuke Tsugaru said: “Petronas is one of the world’s largest LNG suppliers and has been an important partner to JERA for nearly four decades, and this agreement marks another step in that long-standing relationship.
“As the global LNG market continues to face uncertainty, long-term partnerships with reliable suppliers are essential to building a resilient portfolio. This agreement reaffirms JERA’s commitment to securing the LNG needed to support energy security in Japan.”
The agreement also comes on the heels of a memorandum of understanding signed in June 2025 to broaden cooperation along the LNG value chain.
JERA’s current procurement strategy involves sourcing LNG from regions such as Asia-Pacific, the Middle East and the US in an effort to diversify supply and reduce regional risk.
Earlier this year, Petronas LNG signed a 20-year LNG SPA with QatarEnergy. It is the first long-term LNG supply contract between the two companies. Under the deal, the Petronas subsidiary will receive up to 2mtpa of LNG from the Qatari state-owned company.
