Japan trusts Malaysia will remain reliable LNG supplier, says envoy

Japan is among Petronas’s biggest LNG buyers, with much of the gas it imports from Malaysia coming from Sarawak.

Japanese ambassador to Malaysia Noriyuki Shikata said the long-running LNG relationship between Malaysia and Japan forms a key pillar of his country’s energy security.

PETALING JAYA:

 Japan has expressed confidence that Malaysia will remain a reliable supplier of liquefied natural gas (LNG) despite the ongoing difference of opinion between the federal government and Sabah and Sarawak over resource governance.

In an exclusive interview with FMT, its ambassador to Malaysia Noriyuki Shikata said Japan deeply values its longstanding LNG partnership with Malaysia, describing it as a cornerstone of Japan’s energy security.

“Steady supplies from facilities like the Bintulu LNG complex continue to meet Japan’s energy needs amid global uncertainties,” he said, referring to the Petronas production facility in Sarawak, which accounts for a significant portion of Malaysia’s LNG exports to Japan.

Japan has been one of Petronas’s largest and most enduring LNG customers, with a supply relationship dating back to the early 1980s.

Much of Malaysia’s LNG exports come from Sarawak, making it imperative that international buyers such as Japan are closely watching federal-state discussions over gas governance for any potential impact on supply.

While acknowledging that such frictions could introduce short-term uncertainty for buyers, Shikata said Japan’s long-term LNG contracts with Malaysia have provided stability and, so far, insulated supplies from disruption.

“The ongoing discussions between the federal government and Sabah and Sarawak on resource governance are important internal matters, and we trust in Malaysia’s commitment to resolving them collaboratively, as evident in recent progress on revenue-sharing frameworks,” he said.

The talks stem from longstanding disagreements over state rights to oil and gas resources under the Malaysia Agreement 1963 (MA63) and the role of Petronas, with Sarawak in particular seeking greater control and higher revenue from gas production.

Earlier this year, Prime Minister Anwar Ibrahim said despite ongoing disagreements over domestic gas governance, Petronas would continue to honour all of Malaysia’s existing contractual obligations, including its international LNG export contracts.

Looking ahead, Shikata said a balanced solution, through enhanced federal-state joint ventures and clear legal alignments under MA63 would ensure sustained production and attract further investment, to the benefit of all parties.

He also said Japan sees opportunities for deeper collaboration beyond LNG, including investments linked to green transformation initiatives that could create jobs across Malaysia.

“Japan stands ready to support this through technical cooperation and dialogue, strengthening our mutual prosperity,” he added. - FMT