Under the agreement, Jera will procure up to approximately 2 million tonnes per annum (mtpa) of LNG from Petronas LNG, a unit of Petronas, for 20 years from 2028, primarily sourced from Malaysia, according to a statement on Wednesday.
Jera noted that the two firms 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,” Jera said.
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, the company said.
Jera said this agreement would support stable LNG supply to Japan while giving the copany greater flexibility to respond to seasonal fluctuations in LNG demand.
The company added that it would 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.
“Core” LNG supplier to Japan
Petronas said in a separate statement that this new SPA reinforces its position as a “core” supplier to Japan, one of the world’s largest LNG importers.
The agreement deepens a relationship that dates to 1983, when Malaysia shipped its first LNG cargo to Japan.
Petronas noted that the LNG supplies will be delivered using its new generation of 174,000-cbm LNG carriers.
In Malaysia, Petronas operates the giant Bintulu LNG plant with a capacity of 29.3 mtpa.
Petronas also operates two floating LNG facilities, namely the 1.2 mtpa PFLNG Satu and the 1.5 mtpa PFLNG Dua, both located offshore Sabah, and is building a third floating LNG unit.
