PETRONAS and Shizuoka Gas Sign Seven‑Year LNG Supply Agreement
Malaysia’s state‑owned energy giant Petroliam Nasional Berhad (PETRONAS) announced that its subsidiary PETRONAS LNG Ltd. (PLL) has entered into a seven‑year liquefied natural gas (LNG) supply contract with Japan’s Shizuoka Gas Co., Ltd. The agreement, which is set to commence in 2032, calls for the delivery of approximately 0.84 million tonnes of LNG per year to the Japanese utility.
Details of the Agreement
- Volume: About 0.84 million tonnes (MMT) of LNG annually.
- Term: Seven years, beginning in 2032.
- Parties: PETRONAS LNG Ltd. (PLL) and Shizuoka Gas Co., Ltd.
- Signing: Conducted in Kuala Lumpur by PETRONAS Executive Vice President and Chief Executive Officer of Gas and Maritime Business Datuk Adif Zulkifli and Shizuoka Gas President Yoshitake Matsumoto.
The contract builds on a relationship that dates back three decades, when PETRONAS completed its first LNG cargo delivery to Shizuoka Gas.
Historical Partnership and Milestones
Over the past 30 years, PETRONAS has supplied LNG to Shizuoka Gas through a series of spot and term contracts, contributing to the stable operation of the utility’s gas‑fired power plants and city‑gas network. The latest agreement not only extends this collaboration but also commemorates the 30‑year anniversary of the inaugural LNG shipment.
Implications for Japan’s Energy Security
Japan remains one of the world’s largest importers of LNG, relying on the fuel for roughly one‑third of its electricity generation (International Energy Agency, 2024). By securing a long‑term, flexible supply from PETRONAS, Shizuoka Gas aims to bolster its resilience against market volatility and geopolitical disruptions that have affected global LNG trade in recent years.
PETRONAS noted that the deal leverages its diversified global LNG portfolio—spanning assets in Malaysia, Qatar, Australia, and the United States—to provide reliable and adaptable volumes as customers seek greater stability amid shifting energy dynamics.
Decarbonization Collaboration
Beyond volume commitments, the two companies agreed to explore joint initiatives aimed at reducing the carbon intensity of the LNG value chain. Potential areas of cooperation include:
- Investigating carbon capture, utilization, and storage (CCUS) options at liquefaction facilities.
- Studying the use of renewable‑powered electricity for LNG production processes.
- Evaluating low‑carbon marine fuels for LNG carrier fleets.
These discussions align with both PETRONAS’ net‑zero ambition by 2050 and Shizuoka Gas’ goal to increase the share of cleaner energy in its portfolio.
About PETRONAS LNG Ltd.
PETRONAS LNG Ltd. is the LNG marketing and trading arm of PETRONAS, managing a portfolio that includes equity interests in liquefaction plants across Southeast Asia, the Middle East, Oceania, and North America. The company supplies LNG to utilities, industrial users, and bunkering customers in more than 30 countries.
About Shizuoka Gas Co., Ltd.
Shizuoka Gas Co., Ltd. is a regional energy provider headquartered in Shizuoka Prefecture, Japan. It delivers city gas to residential and commercial customers and operates gas‑fired power plants that support the local grid. The utility has been actively pursuing diversification of its fuel sources and enhancing supply security through long‑term contracts.
The newly signed agreement underscores the enduring trust between PETRONAS and Shizuoka Gas while addressing Japan’s pressing need for stable, lower‑carbon energy solutions. As both parties move forward, the partnership is poised to contribute to regional energy resilience and the broader transition toward a more sustainable energy future.
