Malaysia's Petronas signs 20-year LNG supply deal with Japan's JERA

A man arrives at a mosque at the foot of Malaysia's landmark Petronas Twin Towers in Kuala Lumpur on June 23, 2013. (File photo: Reuters)

KUALA ⁠LUMPUR/TOKYO — Malaysian's ​Petronas will supply Japanese utility firm JERA ​with 2 million ‌tonnes of liquefied natural gas (LNG) per annum under a 20-year deal, the leaders of the two countries said on Wednesday.

The agreement, ​which ⁠will begin in 2028, comes as Japan looks to beef up its energy reserves to ‌cope with a global LNG crunch linked to the war in Iran.

"Amid growing uncertainty in the ⁠international energy situation, cooperation with Malaysia, a stable supplier of LNG to Japan, is becoming increasingly important," Japanese Prime Minister Sanae Takaichi said at a press ​conference following a meeting with her Malaysian counterpart Anwar Ibrahim.

Anwar is on a ​three-day ‌working visit to Tokyo, where he has been meeting with government and industry ​officials.

The two leaders agreed Wednesday to deepen energy security cooperation including on LNG exports, as Japan seeks to diversify supplies amid the Middle East conflict.

After summit talks, Takaichi said the two countries also signed a cooperation document between their coast guards in their effort to ensure greater regional maritime security as they promote the vision of a free and open Indo-Pacific amid China's growing influence in the region.

The ⁠two countries also agreed to work together to ensure stable supplies ⁠of fertiliser feedstocks and strengthen critical mineral supply chains, Takaichi said, without providing details.

Anwar said the two countries ⁠will seek to boost trade ​in ringgit and yen currencies, as well as cooperate on artificial intelligence (AI), semiconductors, defence and other energy initiatives.

Malaysia's Prime Minister Anwar Ibrahim, left, and Japan's Prime Minister Sanae Takaichi shake hands at the end a joint press announcement following their bilateral meeting at the Prime Minister’s Office in Tokyo on Wednesday. (Photo: Pool)

Japan and Malaysia have been strengthening their comprehensive strategic partnership.

Malaysia is a key energy exporter for resource-poor Japan, accounting for around 15% of its LNG supplies.

Japan is a major exporter of electrical equipment and auto parts to Malaysia.

Under its official security assistance framework designed to support like-minded countries, Japan has provided defensive equipment such as rescue boats and surveillance drones to Malaysia.