PETRONAS, JERA Sign 20-Year LNG Supply Deal Through 2048

One of Asia's longest-running LNG partnerships just secured its next chapter with a deal that stretches well into the 2040s.

(P&GJ) — PETRONAS and Japan's JERA have signed a new long-term liquefied natural gas supply agreement that will extend one of Asia's longest-running LNG trading relationships into the late 2040s.

Under the agreement, PETRONAS LNG Ltd. will supply up to 2 MMtpy of LNG to JERA over a 20-year period beginning in 2028. The contract reinforces PETRONAS' position as a key LNG supplier to Japan, one of the world's largest LNG import markets.

The new deal builds on a commercial relationship that dates back to 1983, when Malaysia delivered its first LNG cargo to Japan. The companies said the agreement reflects continued demand for long-term LNG supply as Japan seeks to maintain energy security while balancing evolving energy transition goals.

The contract also reflects a shift toward more flexible LNG supply arrangements compared with traditional destination-specific contracts that have historically dominated the LNG market.

PETRONAS said cargoes under the agreement will be transported on its new generation of 174,000-cubic-meter LNG carriers, which were designed to meet updated International Maritime Organization emissions requirements.

Datuk Adif Zulkifli, PETRONAS executive vice president and CEO of gas and maritime business, said the agreement builds on decades of cooperation between the companies and supports Japan's long-term energy needs.

The deal comes as Asian buyers continue securing long-term LNG supply contracts amid growing concerns about future LNG availability and increasing competition for volumes from emerging markets.