Malaysia’s state-owned oil and gas company Petronas has struck a two-decade liquefied natural gas (LNG) supply deal with major Japanese power generation company JERA, strengthening energy ties between the two countries and expanding the companies’ partnership into the 2040s.
Petronas, through its wholly-owned subsidiary Petronas LNG Limited (PLL), and JERA have signed a new long-term supply agreement, which enables the Malaysian player to supply approximately 2 million tons per annum of LNG over 20 years starting in 2028.
The LNG will be delivered using the company’s new generation of 174,000 cubic meter LNG carriers, designed to comply with improved IMO emissions standards, supporting more efficient and lower-emission operations.
The signing of this agreement is seen to signify the shift from traditional point-to-point LNG supply agreements to a more flexible LNG supply arrangement, which is interpreted to further emphasize Petronas’ position as a reliable LNG supplier by expanding its supply capabilities.
The company claims that this deal strengthens its position as an essential supplier to Japan, one of the world’s largest LNG importers, and deepens a relationship that dates back to 1983, when Malaysia shipped its first cargo of LNG to Japan, laying the foundation for an energy partnership described as still central to the country’s energy security.
Datuk Adiv ZulkifliPETRONAS Executive Vice President and CEO of Gas and Marine Business commented: “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 changing consumption patterns, PETRONAS remains focused on delivering reliable, tailored solutions, supporting our partners in enhancing energy security while advancing their transition ambitions.”
Petronas emphasizes that it continues to develop its commercial approach to meet Japan’s evolving requirements in line with the Seventh Strategic Energy Plan to ensure stable energy supply, while improving economic efficiency and environmental priorities as demand evolves.
“As Asian demand for clean energy continues to grow, PETRONAS remains committed to delivering reliable LNG from its global portfolio, supporting energy security for customers today while enabling their paths to a low-carbon future.” The most prominent Malaysian giant.
While Petronas recently Fired Searah, its new 50/50 independent joint venture with Eni that brings together the duo’s key trading businesses across Indonesia and Malaysia, JERA has concluded several LNG supply deals over the past few months, including a deal with Qatar Energy In February 2026.
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