JUNE 2026
Malaysia’s Petronas has signed a 2 MMt/y sales and purchase agreement (SPA) to supply LNG to Japan’s JERA for 20 years starting from 2028. The deal is comprised of 1 MMt/y of free-on-board (FOB) and 1 MMt/y of ex-ship (DES) volumes.
The FOB price is likely concluded at a mid-12% slope of Brent while the DES price is done at a mid-12% slope of Brent plus a constant, taking the overall price to 13.2-13.3% of Brent. FOB supply will be sourced from Petronas’s Bintulu LNG complex.
The deal is understood to have an extension option after 10 years. Contractually, the deal is an extension from JERA’s previous term supply deal for 2.5 MMt/y with Petronas which ended in 2022. Negotiations for the extension took several years to be completed. JERA’s previous deal with Petronas was also a mix of FOB and DES volumes.
The 2 MMt/y deal with Petronas brings JERA’s SPAs signed so far this year to 5 MMt/y. In January, the company signed a 3 MMt/y long-term deal for supply from QatarEnergy. The deal is tied to a 5% equity per train agreement from the North Field South (NFS) expansion. It was concluded at a high 12% slope of Brent DES. There is a price review every nine years.
The equity stake has yet to be announced. JERA is in negotiations with domestic buyers Tohoku Electric and Kyushu Electric for potential back-to-back offtake. These deals have yet to be finalized. Mitsui is also understood to be looking at the possibility of joint equity with JERA.
JERA is expected to announce the name of its new entity. The new entity is likely to manage the company’s US long-term LNG supply agreements.
Petronas was previously in contract extension negotiations with Japanese buyers. They are Tohoku Electric, Chugoku Electric, Shikoku Electric, Hokkaido Electric and Eneos, according to Poten’s LNG Contract Intelligence Service (LCIS). These contracts were extended on a mid-term basis.
Marubeni Signs Strip Supply Deal with Ineos
Japanese trading house Marubeni has signed a term deal for supply from Ineos Energy for approximately 200,000 t/y of LNG starting from 2029 on an ex-ship (DES) basis for three years. The deal was likely concluded on the Henry Hub price plus a constant of $4s/MMBtu.
The UK’s INEOS Energy is expected to supply the DES volumes from the Sempra-led Port Arthur Phase 1 project in the US. Ineos signed a sales and purchase agreement (SPA) with Sempra Infrastructure for 20 years on a free-on-board (FOB) basis in 2022.
Marubeni is keen to boost its LNG supply portfolio and was previously considering buying long-term US FOB offtake. Marubeni’s LNG supply portfolio is comprised of mainly short-term supply. It has a long-term SPA for US LNG with TotalEnergies tied to the Cameron LNG export facility in Louisiana. It is a joint deal with Australia’s Origin Energy. Separately, Marubeni has a one-year strip with Kansai Electric tied to Oman LNG which started in January 2026 on a FOB basis.
This excerpt is taken from Poten’s LNG World Markets. Complete the form below to learn more or request a trial.