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Malaysia, Japan ink 20-year LNG deal, boost local currency trade
🇲🇾 Malaysia /Economy & Trade

Malaysia, Japan ink 20-year LNG deal, boost local currency trade

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Petronas and JERA signed a 20-year LNG supply deal, agreeing to deliver 2 million tons of LNG annually to Japan starting in 2028.
  • Malaysia and Japan will also expand financial cooperation, including a bilateral currency swap agreement to promote local currency transactions.
  • The agreements strengthen strategic ties in energy and finance, reflecting the close relationship between the two nations.

Malaysia and Japan have solidified their strategic partnership in energy and finance with a landmark 20-year liquefied natural gas (LNG) supply agreement and new arrangements to boost bilateral trade using local currencies.

We have just finalized a long-term LNG sale and purchase agreement between Petronas and JERA to supply two million tons of LNG per year for 20 years starting from 2028.

— Anwar IbrahimAnnouncing the LNG deal during a press conference with Japanese Prime Minister Sanae Takaichi in Tokyo.

Petronas, Malaysia's national oil and gas company, and Japanese utility firm JERA Co., Inc. finalized the deal to supply 2 million tons of LNG per year to Japan, beginning in 2028. Malaysian Prime Minister Anwar Ibrahim hailed the agreement as a significant achievement, underscoring the deep trust and close cooperation between the two "friendly nations."

This is an extraordinary achievement and a success in terms of trust and cooperation between two great friendly countries.

— Anwar IbrahimCommenting on the significance of the LNG agreement.

Beyond energy, the two countries are enhancing financial collaboration. This includes expanding transactions in Malaysian Ringgit and Japanese Yen, a move aimed at reducing reliance on third-party currencies and bolstering the economic resilience of both Malaysia and Japan. Anwar expressed pleasure at the understanding reached between Bank Negara Malaysia and the Bank of Japan on this matter.

What is very important and close to my heart is to expand local currency transactions using the ringgit and yen so that we can increase our interdependence on each other.

— Anwar IbrahimDiscussing the expansion of financial cooperation and local currency transactions.

These developments signify a commitment to deepening strategic cooperation for long-term mutual benefit, reflecting the robust and expanding relationship under the Comprehensive Strategic Partnership framework.

I am also very pleased to hear the agreement and understanding reached between Bank Negara Malaysia and the Bank of Japan on this matter.

— Anwar IbrahimExpressing satisfaction with the central banks' agreement on currency matters.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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