Japan has signed a long-term agreement to import liquefied natural gas (LNG) from Malaysia, strengthening its energy security amid ongoing global supply uncertainties.

Under the deal, Japan’s JERA will purchase LNG from Malaysia’s state energy company Petronas for 20 years, starting in 2028. The contract covers about 2 million tonnes of LNG annually, adding to Japan’s efforts to secure stable fuel supplies for power generation.

The agreement follows high-level discussions between Japanese and Malaysian leaders, with both sides emphasizing the importance of reliable energy partnerships. Japan, which depends heavily on imported oil and gas, has been working to reduce risks linked to geopolitical tensions and supply disruptions.

Malaysia remains one of Japan’s key LNG suppliers, alongside Australia. The new deal is expected to deepen energy cooperation between both countries at a time when demand for natural gas remains strong across Asia, especially during periods of high electricity use.

JERA, one of the world’s largest LNG buyers, has been expanding its global sourcing strategy in recent years. The company has also explored increasing imports from the United States as part of efforts to diversify supply and improve energy stability.

Analysts say global LNG markets could remain tight as demand rises in Asia and Europe, potentially keeping prices elevated. Energy buyers have increasingly turned to long-term contracts to avoid volatility in the spot market.

In broader energy trading, crude oil prices were steady, with Brent and WTI showing only slight daily changes as investors monitored geopolitical developments and supply outlooks.