Japan Welcomes First Emergency LNG Deal with Petronas

The Japan Gas Association has welcomed the government's decision to sign its first emergency liquefied natural gas (LNG) deal with Petronas. The master sales and purchase agreement, signed last week, will enable Petronas to deliver LNG to the state-owned Japan Organisation for Metals and Energy Security. This organisation would supply private buyers such as utilities if they were unable to secure supplies elsewhere.

The association's chairman, Takeshi Uchida, views this initiative as a way to build on the government's Strategic Buffer LNG scheme. He hopes that similar agreements will follow, enabling Japan to procure LNG in emergency situations.

Uchida also expressed his desire for Japan's efforts to expand beyond Malaysia and include other LNG-producing countries. However, he noted that these countries' production capacity is limited and it is unclear how much LNG they could supply at short notice.