East Asian partners’ LNG cooperation passing 50-year mark thanks to new deals

Japan’s Mitsubishi Corporation has signed new agreements with Malaysia’s state-owned energy giant Petronas, reaffirming its engagement in two of Malaysia’s liquefied natural gas (MLNG) plants owned by the latter in the country’s Sarawak region.

The Japanese player is set to extend its 10% interest in MLNG Dua and reinvest a 10% equity shareholding in MLNG Tiga, both part of the Petronas LNG complex, for the next decade. The new agreements are said to boost the 46-year partnership enabling the delivery of LNG to international markets, with emphasis on customers in Japan.

Mitsubishi Corporation President and Chief Executive Officer (CEO), Katsuya Nakanishi, noted: “Mitsubishi Corporation looks forward to providing continuous support in growing and nurturing access to global LNG market for PETRONAS’ future volumes with LNG being the fuel of choice in the age of energy transition. 

“At the same time, we are excited to unlock further value through our collaboration with PETRONAS as well as with the Sarawak State Government, with whom we have achieved many historical milestones in Malaysia.”

According to Petronas, this collaboration not only highlights Malaysia as an attractive destination for foreign direct investment but also underscores the commitment of both parties to ensuring energy security and their shared ambition for a lower-carbon future. 

“PETRONAS is honoured to mark a new chapter in our long-standing relationship with Mitsubishi Corporation. With our strengthened synergy, we look forward to the continued successes of MLNG Dua and MLNG Tiga, which have proven mutually beneficial for over 45 years,” noted Petronas President and Group CEO, Tan Sri Tengku Muhammad Taufik.

“Together with Mitsubishi Corporation and the support of the Sarawak State Government, PETRONAS remains fully committed to ensuring the safe and reliable supply of LNG to fuel the economies of Malaysia, Japan and our customers around the globe towards a sustainable, lower-carbon future.”

The Petronas LNG complex comprises four joint ventures: MLNG, MLNG Dua, MLNG Tiga, and Petronas LNG 9. Boasting a combined production capacity of 29.3 million tonnes per annum (mtpa), it is considered one of the world’s largest LNG facilities in a single location. The complex provides lower-carbon energy solutions to various public and private sector customers in Japan.

Earlier this month, Petronas’ affiliate Malaysia Petroleum Management (MPM), hosted an event to explore deepwater opportunities through innovative solutions. Under the motto ‘Unleashing Deepwater Values via Innovative Solutions,’ the event focused on technology expansion, collaboration, and integrated surveillance solutions to balance the need for continued exploration and production to meet the world’s energy demand while cutting emissions. 

In late August, Petronas partnered with ADNOC and Storegga to explore the viability of carbon capture and storage (CCS) facilities offshore Peninsular Malaysia. Earlier that month, production sharing contracts (PSCs) were signed with several oil and gas players as part of the first round of Malaysia Bid Round Plus (MBR+).