Petronas, Jera strenghten LNG ties

The two firms announced the new MoU in a joint statement on Tuesday, saying that it builds upon their long-established partnership since 1983.

Jera, a joint venture of Tepco and Chubu Electric, and Petronas did not reveal further details regarding further LNG supplies.

Petronas has been delivering LNG to Japan for over four decades, while Jera has been purchasing LNG from Malaysia and other countries to secure a stable energy supply for its customers.

As long-term partners, Petronas and Jera are “mutually committed to meet market demands with lower-carbon energy solutions.”

“The companies will continue to explore initiatives aligned with this shared goal as part of both organisation’s broader decarbonisation strategy,” the statement said.

In Malaysia, Petronas operates the giant Bintulu LNG plant witha 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 unit.

On the other hand, Japan’s power firm and LNG trader Jera recently signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States.

The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.

Jera handles approximately 40 million tons of LNG annually, among the largest transaction volumes in the world, according to its website.