PETRONAS LNG Ltd and Japan's JERA Co Inc signed a 20-year liquified natural gas (LNG) sales and purchase agreement on June 10, 2026, in Tokyo. The deal will start in 2028, supplying JERA with up to two million tonnes of LNG per year [1, 2, 3, 4].

The agreement reaffirms PETRONAS's role as a core LNG supplier to Japan, the world's largest LNG importer. Japan sources about 15% of its LNG imports from Malaysia, its second largest supplier after Australia [1, 5]. Ryosuke Tsugaru, JERA’s senior managing executive officer, called PETRONAS "one of the world’s largest LNG suppliers" and said the agreement builds on nearly four decades of partnership with JERA [1].

Prime Minister Datuk Seri Anwar Ibrahim described the deal as "a remarkable achievement and a success in terms of trust and cooperation between two great, friendly nations." He highlighted the importance of expanding trade using local currencies, stating, "What is very important and close to my heart is expanding local currency transactions using the ringgit and yen so that we can increase mutual reliance" [6].

The signing also took place alongside meetings between the Malaysian and Japanese prime ministers, announcing deeper cooperation spanning energy security, critical minerals, maritime safety, environment, and finance [7, 8, 4]. Japan pledged a US$20 million contribution to the Asian Development Bank’s Critical Minerals-to-Manufacturing Financing Partnership Facility as part of the expanded ties [7].

Malaysia and Japan signed four memoranda of cooperation covering maritime safety, environmental sustainability, solid waste management, and medical device regulation. They also exchanged letters of intent on energy security and academic exchanges between the University of Tokyo and International Islamic University Malaysia [8].

Prime Minister Anwar said Malaysia is emerging as a hub for semiconductor digital technologies and will collaborate on critical minerals and resilient supply chains with Japan [4]. Japanese Prime Minister Sanae Takaichi said, "Amid growing uncertainty in the international energy situation, cooperation with Malaysia, a stable supplier of LNG to Japan, is becoming increasingly important." The deal comes amid global energy uncertainty driven by Middle East tensions and worldwide LNG supply challenges [2, 3, 4].

The LNG contract is set to begin deliveries in 2028, marking the next phase of energy cooperation between the two countries.