Malaysia’s state-owned oil and gas heavyweight Petronas has shaken hands with Ineos Explora, a subsidiary of Japanese group Ineos, over a deal that will enable the latter to rejoin a liquefied natural gas (LNG) project that receives gas from offshore fields in Malaysian waters.
The two companies have reaffirmed their long-term partnership, first established in 1995, by signing definitive agreements to formalize Ineos’s return to the market. Malaysia LNG 3 (MLNG 3)a joint venture involving Petronas and other partners, to liquefy natural gas produced from fields, including Block SK-10 Operated by Eneos Xplora, it is located off the coast of Sarawak, Malaysia.
Subject to certain closing conditions being met, Eneos will own a 10% stake in MLNG Tiga for the next decade, following the expiration of the previous joint venture agreement in 2023. The new deals were signed by Datuk Adiv ZulkifliExecutive Vice President of Petronas and CEO of Gas and Marine Business, and Yasuhiko UchidaRepresentative Director and President of Eneos Xplora.
Uchida confirmed: “MLNG Tiga has been a project that has been steadily supplying LNG to Japanese buyers since the start of operations in 2003, under the cooperation between our group and Petronas, and we are very pleased to be involved again.
“As we strengthen our partnership with PETRONAS, we will also work closely with our fellow shareholders – the Sarawak State Government and Mitsubishi Corporation, to realize new value during the energy transition.
The signing ceremony was witnessed by A Marina Mohamed TayyibSenior Vice President of Corporate Strategy at PETRONAS, and Jotaro TomoedaCEO, Senior Vice President and Head of Business Division 1 at Eneos Xplora.
The agreement is said to reflect the companies’ shared commitment to enhancing long-term energy security and supporting reliable LNG supplies to international markets, especially Japan, amid an increasingly complex and volatile global energy landscape.
Tan Sri Tengku Mohd TawfiqPetronas President and Group CEO commented: “LNG continues to play an indispensable role in the global energy mix, meeting the demands of today’s economies while supporting a credible transition towards a low-carbon future.
“With Asia at the heart of global LNG demand growth, stable supply and long-term partnerships remain key to economic resilience across the region. The collaboration with Ineos, which now spans three decades, reflects that long-term conviction, which continues to serve the energy interests of both countries in the decades ahead.”
Effective April 1, 2026, Eneos Group has consolidated its natural gas and LNG supply chain by transferring Eneos Corporation’s natural gas liquefaction and domestic sales businesses to Eneos Xplora.
Aside from the return to MLNG Tiga, the company continues to expand its presence in Malaysia through the SK-10 Block gas field development and production project and its involvement in the Petronas LNG 9 Sdn-operated LNG liquefaction plant. Bhd. (PL9SB).
“Eneos’ return to MLNG Tiga reflects shared confidence in the asset’s resilience and long-term role in Asia’s LNG landscape. It also reinforces Petronas’ focus on building a reliable LNG system that continues to deliver value to customers and partners, particularly in important markets such as Japan.” Zulkifli said.
The new agreement is seen as enhancing foreign investors’ continued confidence in Malaysia’s investment climate and long-term growth prospects.
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