JERA, Japan’s largest power generation company, has signed a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with PETRONAS LNG, a subsidiary of Malaysian state-owned oil and gas company PETRONAS.
Under the agreement, JERA will procure up to approximately 2 million tonnes per annum (MTPA) of LNG for 20 years from 2028, primarily sourced from Malaysia.
JERA and PETRONAS have built a strong partnership over nearly four decades. This SPA follows a memorandum of understanding signed in June 2025 to expand collaboration across the LNG value chain.
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 amid rising geopolitical risks. In Japan, seasonal variability in LNG demand is also increasing due to factors such as the aging of oil-fired power plants and the growing introduction of renewable energy, heightening the need to secure flexibility in fuel supply.
This agreement will support stable LNG supply to Japan while giving JERA greater flexibility to respond to seasonal fluctuations in LNG demand.
Ryosuke Tsugaru, JERA's chief low carbon fuel officer says: 'PETRONAS is one of the world’s largest LNG suppliers and has been an important partner to JERA for nearly four decades, and this agreement marks another step in that longstanding relationship. As the global LNG market continues to face uncertainty, long-term partnerships with reliable suppliers are essential to building a resilient portfolio. This agreement reaffirms JERA's commitment to securing the LNG needed to support energy security in Japan.'
JERA will continue to build a balanced LNG procurement portfolio by incorporating supply from regions including the Middle East, Asia-Pacific, and the United States, while diversifying regional supply risks. JERA will also continue to strengthen its operational capabilities to enable flexible and timely responses during periods of supply-demand tightness, reinforcing its ability to deliver stable energy to Japan.
