Malaysia’s state-owned oil and gas heavyweight Petronas has sealed a two-decade-long liquefied natural gas (LNG) supply arrangement with Japan’s power generation major JERA, which fortifies the energy bonds between the two countries and extends the companies’ partnership into the 2040s.
Petronas, through its wholly owned subsidiary Petronas LNG Ltd. (PLL), and JERA have signed a new long-term supply agreement, which enables the Malaysian player to provide up to approximately 2 million tonnes per annum (mtpa) of LNG over 20 years starting in 2028.
LNG will be delivered using the firm’s new generation of 174,000-cubic-meter LNG carriers, designed to comply with the International Maritime Organization’s enhanced emissions standards, supporting more efficient and lower-emission operations.
The signing of this agreement is perceived to signify the transformation from traditional point-to-point LNG supply agreements to a more flexible LNG supply arrangement, which is interpreted to further underscore Petronas’ position as a reliable LNG supplier through the expansion of its supply capabilities.
The company claims that this deal reinforces its position as a core supplier to Japan, one of the world’s largest LNG importers, and deepens a relationship that dates to 1983, when Malaysia shipped its first LNG cargo to Japan, laying the foundation for an energy partnership that is described as remaining central to the country’s energy security.
Datuk Adif Zulkifli , Petronas’ Executive Vice President and Chief Executive Officer of Gas and Maritime 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 shifting consumption patterns, Petronas remains focused on delivering reliable, and tailored solutions, supporting our partners in strengthening energy security while advancing their transition ambitions.”
Petronas emphasizes that it continues to advance its commercial approach to meet Japan’s evolving requirements in line with the 7th Strategic Energy Plan to ensure stable energy supply, while improving economic efficiency and environmental priorities as demand evolves.
“As Asia’s demand for cleaner energy continues to grow, Petronas remains committed to delivering reliable LNG from its global portfolio, supporting customers’ energy security today while enabling their pathways towards a lower-carbon future,” highlighted the Malaysian giant.
While Petronas recently launched Searah, its new 50/50 independent joint venture with Eni that combines the duo’s key businesses across Indonesia and Malaysia, JERA lined up multiple LNG supply deals over the past few months, including the one with QatarEnergy in February 2026.