Malaysia’s national energy company PETRONAS has signed a long-term liquefied natural gas (LNG) supply agreement with Japanese utility company JERA, under which PETRONAS will supply 2 million tonnes of LNG annually for a period of 20 years beginning in 2028. The agreement was announced during Malaysian Prime Minister Anwar Ibrahim’s official visit to Japan and reflects the continued strengthening of energy cooperation between the two countries.
The LNG will be supplied by Petronas LNG Ltd, a subsidiary of PETRONAS, using its new-generation LNG carriers with a cargo capacity of 174,000 cubic metres. The long-term contract is expected to provide JERA, Japan’s largest LNG buyer, with greater flexibility to manage fluctuations in domestic energy demand while reinforcing Japan’s long-term energy security strategy.
The agreement comes amid growing concerns over global LNG supply security and increasing volatility in international energy markets. Japan currently imports approximately 15 per cent of its LNG requirements from Malaysia, making Malaysia its second-largest LNG supplier after Australia. Beyond LNG cooperation, Malaysia and Japan also agreed to enhance collaboration in several strategic sectors, including critical minerals, artificial intelligence, semiconductors, nuclear energy, defence and maritime security. The two countries additionally expressed support for expanding trade and financial cooperation through greater use of the Malaysian ringgit and Japanese yen in bilateral transactions.