Japan gas association welcomes government's first emergency LNG deal with Petronas

Japan Gas Association Chair Takeshi Uchida expressed welcome for the government's first emergency LNG deal with Malaysia's Petronas, stating that similar agreements would be welcomed. The recent master sales and purchase agreement between the two parties will allow Petronas to supply liquefied natural gas to the state-owned Japan Organization for Metals and Energy Security, which in turn will provide private buyers like utilities with access to the gas in case they cannot secure it elsewhere.

Uchida, who also chairs Tokyo Gas, the largest city gas provider in Japan, views this move as a step forward in the government's Strategic Buffer LNG scheme. He expressed hope that Japan's efforts to establish such ties would extend beyond Malaysia to other LNG-producing countries. However, he noted that the latter's production capacity is limited, making it uncertain how much LNG they could supply at short notice.

Uchida added that assessing the new contract is challenging due to undisclosed details such as prices and other terms. The SBL scheme, established by Japan's industry ministry in 2023, requires a designated company to secure LNG supplies in advance as an emergency reserve for utilities facing supply disruptions or other emergencies.