This Memorandum of Cooperation (MoC) will bolster Japan's liquefied natural gas (LNG) supply stability and ensure a reliable and secure energy supply for Japan.
PETRONAS LNG Sdn. Bhd. a subsidiary of Malaysia’s national energy company Petroliam Nasional Berhad (PETRONAS), and the Japan Organization for Metals and Energy Security (JOGMEC) have signed a landmark Memorandum of Cooperation (MoC) aimed at bolstering Japan's long-term liquefied natural gas (LNG) supply stability. This strategic alliance, formalized during the recent Energy Asia 2025 conference in Kuala Lumpur, underscores a renewed commitment to energy security and resilience in the region.
The signing ceremony, held on June 23, 2025, saw Shamsairi Mohd Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS, and Hiroyuki Mori, Executive Vice President, Energy Business of JOGMEC, affixing their signatures.
The cooperation framework outlined in the MoC is designed to explore various avenues for ensuring a stable and secure LNG supply. This includes potential utilization of LNG storage facilities in Malaysia, which could serve as a crucial buffer against unforeseen supply chain interruptions. JOGMEC, a Japanese government agency operating under the Ministry of Economy, Trade and Industry (METI), has expanded its functions in recent years to include the procurement of fuel in emergency situations, further underscoring the strategic importance of this agreement.
Beyond supply stability, the collaboration will also delve into initiatives aimed at reducing methane emissions across the LNG value chain, aligning with broader global efforts towards a low-carbon energy transition. Both parties mutually recognize LNG's pivotal role as a transition fuel in achieving net-zero ambitions, and this partnership is expected to contribute significantly to Japan's energy security while supporting its climate goals.
The MoC sets the stage for comprehensive discussions on a strategic LNG arrangement that seeks to strengthen LNG supply to Japan and implement robust measures to mitigate potential disruptions. This move is particularly significant given Japan's reliance on LNG as a critical component of its energy mix, particularly for power generation, where it accounts for approximately 30% of the country's electricity. The ongoing global energy landscape, marked by geopolitical volatilities and supply chain challenges, has amplified the importance of such bilateral agreements.
Shamsairi Mohd Ibrahim emphasized the enduring partnership between PETRONAS and Japan, stating, "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. This partnership is especially timely, aligning with the momentum of Energy Asia, where regional collaboration and strengthening the region’s energy security were at the forefront of the dialogues." His remarks highlight PETRONAS's consistent commitment to Japan's energy needs for over four decades.
