PETRONAS and JERA sign 20‑year LNG supply deal extending partnership into 2040s
- PETRONAS, through PETRONAS LNG Ltd., will supply up to approximately 2 million tonnes per annum of LNG over a 20‑year term starting in 2028.
- The deal extends a trading relationship with Japan that began in 1983, reaffirming PETRONAS as a core supplier to that market.
- LNG deliveries will use new 174,000‑cubic‑metre carriers built to comply with the International Maritime Organization’s enhanced emissions standards.
- The agreement moves from traditional point‑to‑point contracts to a more flexible LNG supply arrangement to meet evolving demand and security needs.
Deal overview
PETRONAS and JERA signed a long‑term LNG supply agreement extending their partnership into the 2040s. Under the contract, PETRONAS, via its wholly owned PETRONAS LNG Ltd. (PLL), will supply up to approximately 2 million tonnes per annum over a 20‑year period beginning in 2028.
Logistics and delivery
Deliveries will be made using PETRONAS’ new generation of 174,000‑cubic‑metre LNG carriers designed to meet the International Maritime Organization’s enhanced emissions standards, supporting more efficient and lower‑emission operations.
Context and commercial approach
The agreement reflects a shift from traditional point‑to‑point LNG contracts to a more flexible supply arrangement aimed at responding to rising demand, supply‑security concerns, price volatility and changing consumption patterns. PETRONAS positions the deal as part of its effort to meet Japan’s evolving requirements under the 7th Strategic Energy Plan while balancing supply stability, economic efficiency and environmental priorities.
Participants and history
The signing in Tokyo was attended by PETRONAS Executive Vice President and CEO of Gas and Maritime Business Datuk Adif Zulkifli and JERA Senior Managing Executive Officer and Chief Low Carbon Fuel Officer Ryosuke Tsugaru, among others. The relationship traces back to Malaysia’s first LNG shipment to Japan in 1983.
Source: PCG