Regional LNG: JERA signs 20-year LNG supply deal with Petronas

Malaysia's state energy company Petroliam Nasional Bhd (Petronas) has signed a 20-year agreement to supply up to 2 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Japan's JERA Co. Inc. starting in 2028.

Petronas LNG Ltd, a subsidiary of Petronas, said in a statement on Wednesday that the deal reflects a shift from traditional point-to-point LNG contracts toward more flexible supply arrangements. LNG cargoes will be delivered using Petronas' new fleet of 174,000-cubic-meter LNG carriers designed to meet stricter emissions standards set by the International Maritime Organization (IMO).

JERA said in a separate statement that the LNG will be sourced primarily from Malaysia and highlighted the growing importance of securing reliable LNG supplies amid rising geopolitical risks and increasing demand volatility in Japan's power sector.

"As natural gas is increasingly being reassessed globally as an essential energy source for stable energy supply, securing reliable LNG has become even more important from an energy security perspective," JERA said.

The agreement formalizes a memorandum of understanding signed by the two companies at the Energy Asia forum in Kuala Lumpur in June 2025.

JERA said it will continue to diversify its LNG procurement portfolio across multiple regions, including the Middle East, Asia-Pacific and the United States, to strengthen supply security.

Editing by Reiner Simanjuntak