Japan Gas Association Welcomes Emergency LNG Deal with Petronas

The Japan Gas Association has expressed support for the government's agreement to purchase liquefied natural gas (LNG) from Malaysia's Petronas during emergencies. Chairman Takeshi Uchida stated that he expects additional similar contracts with other nations.

The master sales and purchase agreement was signed last week, allowing Petronas to deliver LNG to the state-owned Japan Organization for Metals and Energy Security. This organization will then provide supplies to private buyers, including utilities, if they cannot obtain them through other channels.

Uchida described the agreement as an extension of the government's Strategic Buffer LNG scheme, which aims to secure emergency reserves for utilities experiencing supply disruptions or emergencies.