QatarEnergy has also signed a 27-year deal to sell LNG to Japan’s JERA, the first long-term pact between the two nations in over a decade
Malaysia’s state-owned firm Petronas is set to sign a liquefied natural gas supply deal with QatarEnergy as the Southeast Asian nation seeks more supplies of the super-chilled fuel, according to two sources familiar with the matter.
Petroliam Nasional, or Petronas, will sign a contract for up to 2 million tonnes (2.2 million tons) per annum of LNG, one of the sources said.
Qatar is the world’s second-largest LNG exporter after the United States, shipping out 81.07 million tonnes of the fuel last year, according to Kpler data.
Its massive North Field expansion project will produce its first LNG in the second half of 2026. When at full production, the project is expected to produce 126 million tonnes of LNG per annum by 2027, boosting QatarEnergy’s output by some 85 per cent from its current 77 million tonnes per annum.
Petronas is up against dwindling domestic gas reserves while local demand for the fuel rises, prompting it to actively pursue new gas opportunities abroad and form partnerships with other energy firms while seeking new long-term LNG import deals.
The firm said last year it was working to get a third regasification plant up and running in Malaysia.
In recent years, Petronas has signed LNG import deals with Woodside Energy, Commonwealth LNG, Venture Global and ADNOC.
The Petronas deal comes on the heels of Qatar entering a 27-year agreement to sell LNG to Japan’s biggest utility, the first long-term supply accord between the two countries in more than a decade.
Japan’s JERA will purchase about 3 million tonnes of LNG per year from QatarEnergy starting in 2028, according to an announcement in Doha on Tuesday. Qatar supplied about 3.3 million tonnes of the fuel to Japan last year, compared with about 10 million tonnes in 2017.
The binding agreement, one of the longest for a Japanese buyer in years, is a shot in the arm for Qatar, which had steadily lost business in Japan – the world’s second-largest LNG buyer – as the nation’s utilities opted for more flexible supply from rival exporters such as the US.
“It ensures we remain fully aligned with Japan’s national policy and the energy transition goals, securing a stable and resilient energy future for the nation,” JERA said in a statement.
But Qatari LNG contracts have some of the strictest terms, like so-called destination clauses, that do not allow for easy resale of supply. And with the future of Japanese gas demand uncertain due in part to potential nuclear reactor restarts, companies have been reluctant to commit to supply that cannot easily be traded or redirected.
A Japanese company has not signed an LNG purchase agreement with Qatar in more than a decade. JERA decided not to renew a large purchase contract it had with Qatar when it lapsed in 2021, and has been in negotiations for new supply with the country for years.
QatarEnergy also signed a non-binding agreement with Japan’s Ministry of Economy, Trade and Industry and JERA to supply Japan with additional LNG during emergency situations, according to a statement from Qatar.