PETRONAS and JERA have doubled down on one of Asia’s most enduring energy relationships, signing a new long-term liquefied natural gas (LNG) supply agreement that pushes their partnership deep into the 2040s.
Under the deal, PETRONAS—through its LNG arm PETRONAS LNG —will supply up to around 2 million tonnes per annum of LNG over a 20-year period starting in 2028. The agreement further strengthens PETRONAS’ role as a core energy supplier to Japan, one of the world’s largest LNG import markets.
The announcement reinforces a partnership that dates back to 1983, when Malaysia first shipped LNG to Japan, laying the groundwork for what has become a strategically vital energy corridor between the two nations.
The signing ceremony in Tokyo was attended by senior leadership from both sides, underscoring the importance of the agreement in shaping long-term energy security and transition planning for Japan.
Beyond volume commitments, the deal signals a shift in LNG contracting strategy—moving away from rigid point-to-point supply structures toward more flexible arrangements designed to better match evolving demand patterns and market volatility.
PETRONAS will also deploy next-generation LNG carriers with 174,000-cubic-meter capacity, engineered to meet International Maritime Organization emissions standards and improve operational efficiency.
As Japan refines its 7th Strategic Energy Plan, PETRONAS said it is aligning its commercial approach to support stable supply while balancing cost and environmental priorities.
PETRONAS Executive Vice President and Chief Executive Officer of Gas and Maritime Business, Datuk Adif Zulkifli, highlighted the long-standing trust underpinning the partnership, saying:
“We value the strong partnership we have built with JERA over the decades, underpinned by mutual trust and a shared focus on reliability. We look forward to building on this foundation as we continue to support Japan’s evolving energy needs.
"In an increasingly dynamic LNG market shaped by rising demand, supply security concerns, price volatility, and shifting consumption patterns, PETRONAS remains focused on delivering reliable, and tailored solutions, supporting our partners in strengthening energy security while advancing their transition ambitions.”
With global LNG demand rising and Asia remaining a key growth centre, the agreement cements PETRONAS’ position as a long-term strategic supplier while deepening its role in supporting Japan’s energy security and transition goals.
