
Petroliam Nasional Bhd. (Petronas) has signed a memorandum of cooperation (MOC) with the Japan Organization for Metals and Energy Security (JOGMEC), on top of an agreement announced days earlier for the Malaysian national oil and gas company to supply Japanese power utility JERA Co. Inc. with LNG.
“The cooperation aims to ensure a stable supply of LNG under normal circumstances, while addressing sudden disruptions in LNG supply, through a strategic LNG arrangement outside of Japan, which could include exploring the utilization of LNG storage facilities in Malaysia”, government agency JOGMEC said in an online statement Monday.
JOGMEC said it steps in when private companies in Japan face difficulties in procuring fuel. “Upon request from the Minister of Economy, Trade and Industry, JOGMEC will procure fuel for power generation and LNG for city gas production”, it said.
“The ongoing crisis in Ukraine has prompted discussions on the significance of LNG in enhancing energy security and facilitating a low-carbon transition”, JOGMEC noted. “The International Energy Agency highlights that LNG demand, particularly in Asia, is on the rise and expected to grow steadily until 2030, driven by electricity needs from AI and data centers under current policy frameworks.
“In Japan, LNG is the primary fuel for power generation, contributing to approximately 30 percent of the power generated. Yet, it remains vulnerable to challenges such as geopolitics factors, weather fluctuations, and equipment malfunction. Hence, affordable and stable supply of LNG is essential to the country’s economy and people’s daily lives”.
Shamsairi Mohd Ibrahim, vice president for LNG marketing and trading at Petronas, said separately, “We take pride in being Japan’s longstanding energy partner, and this MoC is a testament of our role as the key reliable LNG Supplier to Japan since 1983”.
The agreement was signed at the Energy Asia forum in Kuala Lumpur last week and announced later at the LNG Producer-Consumer Conference in Tokyo.
At the gathering in the Malaysian capital Petronas also signed memorandums of understanding (MOUs) with JERA and South Korea’s Korea Gas Corp. (KOGAS).
The MOU between Petronas and JERA will “expand their collaboration across the gas value chain… including providing reliable LNG supply for Japan”, Petronas said.
The MOU with KOGAS “not only reinforces PETRONAS’ commitment as a long-term LNG supplier to KOGAS, but also in advancing cleaner energy solutions through opportunities in carbon capture and storage, renewable energy and hydrogen development to address pressing climate challenges”, Petronas said in another statement.
At Energy Asia Petronas also committed to purchasing one million metric tons per annum (MMtpa) for 20 years from Kimmeridge Energy Management Co. LLC’s planned Commonwealth LNG project in Louisiana.
On Thursday Commonwealth said it had completed the permitting process before the United States Department of Energy (DOE), allowing it to deliver to both FTA and non-FTA countries.
“Commonwealth anticipates reaching a final investment decision in the third quarter of this year with first LNG production expected in 2029”, Commonwealth said.
Commonwealth is permitted to export up to 9.5 MMtpa, equivalent to about 441.4 billion cubic feet (Bcf) a year or 1.21 Bcf per day. The DOE granted the FTA portion of the permit April 2020 for a 25-year term. The non-FTA permit lasts through December 2050.
Additionally at Energy Asia Petronas entered into a heads of agreement with Woodside Energy Group Ltd. for the purchase of one MMtpa from the Australian company’s global portfolio, including the under-construction Louisiana LNG, for 15 years. Delivery is set to start 2028.
Woodside’s Louisiana LNG reached an FID last April. Louisiana LNG holds a DOE authorization to export a cumulative 1.42 trillion cubic feet a year of natural gas equivalent, or 27.6 MMtpa of LNG according to Woodside, to both FTA and non-FTA countries.
The FID approved phase 1, which involves three liquefaction trains with a combined capacity of 16.5 MMtpa.
The Woodside-Petronas agreement “is expected to support PETRONAS’ efforts to ensure secure, flexible LNG supply to meet growing demand in Peninsular Malaysia and the broader Asia-Pacific region”, Petronas said.
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