JERA Expands LNG Procurement Portfolio with New Long-Term Agreement with PETRONAS2026/06/10

JERA Co., Inc. (JERA), a global energy leader and Japan’s largest power generation company, today announced the signing of a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with PETRONAS LNG Ltd., 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, Chief Low Carbon Fuel Officer of JERA, said:
"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.

＜Overview of Sales and Purchase Agreement＞

　　　　　　　　LNG Sale and Purchase Agreement Commemoration Signing Ceremony 　　　　　　　　　　　　　　　　 between JERA and PETRONAS

From Left: Mr. Datuk Adif Zulkifli Executive Vice President and CEO of Gas & Maritime Business, PETRONAS, Mr. Ezran Mahadzir, CEO, PETRONAS LNG Ltd., Mr. Seijiro Tamada, Executive Officer, Head of the LNG Origination Group 2 of LNG Division, JERA, Mr. Ryosuke Tsugaru, Senior Managing Executive Officer, Chief Low Carbon Fuel Officer, JERA.

About JERA
JERA is a global energy leader and Japan’s largest power generation company focused on providing cutting-edge solutions to the world's energy issues. Established in 2015, the Company produces one-third of Japan’s electricity, and is one of the largest LNG buyers in the world. JERA has global reach and strength throughout the energy supply chain, including participation in upstream gas exploration and production, LNG projects, fuel procurement and transportation, and power generation globally. 
In support of a responsible energy transition, JERA aims to achieve net-zero CO₂ emissions from its domestic and overseas businesses by 2050. 
For more details: https://www.jera.co.jp/english