Thirty years ago, the first transport ship carrying liquid natural gas sailed north from Southeast Asian waters and arrived at a port in Shizuoka Prefecture, Japan, marking the first handshake between Petronas and Shizuoka Gas. Thirty years later today, at the signing ceremony in Kuala Lumpur, both parties have once again written down this energy bond that spans time and space until 2039.

For Shizuoka Prefecture, natural gas is not only a fuel, but also a lifeline for maintaining industrial operation and people's livelihood. With the increasing volatility of the global energy market, how to ensure the stability of this lifeline has become a common issue faced by both sides. This renewal is not only a business transaction, but also a strategic anchor for both companies to cope with future uncertainties.

Lock in supply for seven years

According to the latest signed sales and purchase agreement, Petronas will supply a total of approximately 840000 tons of LNG to Shizuoka Gas through its diversified global resource pool for the next seven years starting from 2032. Behind this number is Petronas' strong supply chain resilience. In addition to a stable local gas source in Malaysia, the company has recently made two major exploration discoveries in Block 52 off the coast of Suriname, which has added important weight to its long-term performance capability. For Shizuoka Gas, this long-term contract order means obtaining a highly certain energy guarantee in the complex and ever-changing international market.

Beyond traditional buying and selling

This cooperation does not stop at the traditional "pay upfront, deliver upfront" approach. Faced with the global trend of carbon reduction, both sides have clearly stated their intention to explore decarbonization opportunities in the LNG value chain. This indicates that future cooperation may cover cutting-edge fields such as carbon capture and biomethane blending. Petronas Executive Vice President Adif Zukifli stated that as customer needs change, the company will be committed to providing flexible and reliable solutions that balance practical energy transformation with environmental responsibility. This shift from pure trade to extending the green value chain has established a new paradigm of cooperation for the industry.

Consolidate energy resilience

In the current volatile global geopolitical and economic environment, energy security has been raised to unprecedented heights. The signing of this agreement reflects the urgent need of international buyers for flexible supply solutions. By leveraging Petronas' global LNG asset portfolio, Shizuoka Gas is able to optimize its resource allocation and effectively resist market volatility risks. This is not only a recognition of mutual trust over the past thirty years, but also a forward-looking layout for the energy security landscape in the next fifteen years, ensuring that Shizuoka Prefecture remains stable in the wave of energy transformation.Editor/Yang Meiling