Petronas Signs 20-Year LNG Supply Deal With Japan’s JERA To Strengthen Energy Security Amid Global Uncertainty

KUALA LUMPUR,June,2026 – Malaysia’s national energy company Petroliam Nasional Bhd, better known as Petronas, has signed a major long-term liquefied natural gas supply agreement with Japan’s utility giant JERA Co Inc, strengthening Malaysia’s role as a key LNG supplier to Japan amid rising global energy uncertainty.

Under the agreement, Petronas will supply up to approximately 2 million tonnes per annum of LNG to JERA over a 20-year period, beginning in 2028. The supply will be delivered through Petronas’ wholly owned subsidiary, Petronas LNG Ltd.

The deal extends the energy partnership between Petronas and JERA into the 2040s, reinforcing a relationship that has played an important role in Japan’s long-term energy security. According to Petronas, Malaysia’s LNG relationship with Japan dates back to 1983, when Malaysia shipped its first LNG cargo to the country.

The agreement was announced during Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s working visit to Tokyo, where he met Japanese government and industry leaders. Malay Mail reported that Anwar is on a three-day working visit to Japan, with energy cooperation among the key issues discussed.

Japanese Prime Minister Sanae Takaichi said cooperation with Malaysia has become increasingly important as the international energy situation grows more uncertain. She described Malaysia as a stable LNG supplier to Japan, especially at a time when Japan is seeking to strengthen its energy reserves due to pressure in the global LNG market.

The deal comes at a crucial time for Japan, one of the world’s major LNG importers. As global energy markets face geopolitical risks and supply pressure, long-term LNG agreements are becoming increasingly important for countries that depend heavily on imported energy.

For Petronas, the agreement further strengthens its position as a reliable LNG supplier in Asia. The company said the latest supply arrangement marks a shift from traditional point-to-point LNG contracts towards a more flexible LNG supply model, allowing Petronas to better support Japan’s evolving energy needs.

Petronas also said LNG deliveries under the agreement will use its new generation of 174,000-cubic-metre LNG carriers, which are designed to comply with the International Maritime Organization’s enhanced emissions standards. The use of these vessels is expected to support more efficient and lower-emission LNG operations.

The signing was attended by senior officials from both companies, including Petronas Executive Vice President and Chief Executive Officer of Gas and Maritime Business Datuk Adif Zulkifli, Petronas LNG Ltd CEO Ezran Mahadzir, JERA Executive Officer and Head of LNG Origination Group 2 Seijiro Tamada, and JERA Senior Managing Executive Officer, Chief Low Carbon Fuels Officer and Head of LNG Division Ryosuke Tsugaru.

Datuk Adif Zulkifli said Petronas values the long-standing partnership with JERA, which has been built on mutual trust and reliability. He added that the company will continue supporting Japan’s evolving energy requirements in an LNG market shaped by rising demand, supply security concerns, price volatility and changing consumption patterns.

Beyond LNG, Malaysia and Japan also agreed to deepen cooperation in several strategic sectors. According to Malay Mail, both countries will work together to ensure stable supplies of fertiliser feedstocks and strengthen critical mineral supply chains.

Prime Minister Anwar also said Malaysia and Japan would seek to boost trade using the ringgit and yen, while expanding cooperation in areas such as artificial intelligence, semiconductors, defence and energy initiatives.

The agreement is significant because it goes beyond a standard commercial energy deal. It reflects deeper Malaysia-Japan cooperation in energy security, industrial resilience and regional economic stability at a time when Asian economies are facing uncertain global supply conditions.

For Japan, securing LNG from Malaysia helps diversify its energy sources and reduce exposure to unpredictable supply disruptions. For Malaysia, the agreement strengthens Petronas’ global LNG position and reinforces the country’s role as a trusted energy partner in the Asia-Pacific region.

The 20-year supply deal also shows that LNG remains an important part of Asia’s energy transition. While countries continue to invest in renewable energy and low-carbon technologies, LNG is still widely viewed as a key transitional fuel that can help ensure stable power supply while reducing reliance on more carbon-intensive energy sources.

the Petronas-JERA agreement marks a major step in Malaysia-Japan energy cooperation. It strengthens long-term LNG supply security, expands strategic business ties and supports broader collaboration between both countries in trade, technology, defence and energy resilience.