JERA secures 2M tonnes of LNG supply from Petronas

The long-term LNG Agreement covers two million tonnes annually from 2028.

Japan’s JERA Co., Inc. has signed a long-term liquefied natural gas (LNG) sales and purchase agreement with Malaysia’s PETRONAS LNG Ltd. for up to around 2 million tonnes per annum from 2028.

The contract runs for 20 years and will source LNG primarily from Malaysia, supporting JERA’s procurement portfolio and Japan’s supply stability.

“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 amidst rising geopolitical risks,” the company said.

JERA also highlighted seasonal variability in LNG demand, stating that its ageing oil-fired power plants and scaling of renewable energy have heightened Japan’s demand for flexible supply.

It added that it will use the contract to help meet seasonal demand fluctuations and strengthen supply flexibility.

The deal builds on a memorandum of understanding signed in June 2025 between the two companies and follows a long-term commercial relationship of nearly four decades.

JERA said it will continue to diversify LNG supply across the Middle East, Asia-Pacific, and the US.