Malaysia’s Petronas signs 20 year LNG supply deal with Japan’s JERA

Malaysian energy giant Petronas has signed a long-term agreement to supply 2 million tonnes of liquefied natural gas (LNG) annually to Japanese utility company JERA under a 20-year contract beginning in 2028, marking a significant step in strengthening energy cooperation between the two countries.According to agnecy reports,the deal was announced on Wednesday during Malaysian Prime Minister Anwar Ibrahim's three-day working visit to Tokyo, where he held talks with Japanese Prime Minister Sanae Takaichi and met senior government and industry leaders.The agreement comes as Japan seeks to bolster its long-term energy security amid growing concerns over a potential global LNG supply crunch linked to the conflict involving Iran and broader geopolitical uncertainties affecting energy markets.
Addressing a joint press conference after meeting Anwar, Takaichi underscored the importance of Malaysia as a reliable energy partner for Japan.“Amid growing uncertainty in the international energy situation, cooperation with Malaysia, a stable supplier of LNG to Japan, is becoming increasingly important,” she said.The LNG supply agreement is expected to provide Japan with greater energy stability while reinforcing Malaysia’s position as a key supplier of cleaner-burning fuel to major Asian economies.
Beyond energy cooperation, the two leaders agreed to enhance collaboration in ensuring stable supplies of fertiliser feedstocks and strengthening critical mineral supply chains, reflecting shared concerns over resource security and resilient industrial networks.The discussions also covered a broader economic partnership agenda. Anwar said Malaysia and Japan would work to expand trade settlements in local currencies, including the ringgit and the yen, with the aim of facilitating bilateral commerce and reducing dependence on third-country currencies.
He added that both countries are exploring deeper cooperation in strategic sectors such as artificial intelligence, semiconductors, defence, and emerging energy technologies.
The announcements underscore the growing economic and strategic partnership between Malaysia and Japan as both nations seek to strengthen supply-chain resilience, energy security, and technological collaboration amid an evolving global economic landscape.The Petronas-JERA agreement is among the largest long-term LNG supply arrangements announced in the region in recent years and is expected to support Japan’s energy transition goals while providing a stable export market for Malaysian LNG production over the next two decades.