By DayakDaily Team
KUALA LUMPUR, July 29: PETRONAS LNG Ltd (PLL), a subsidiary of Petroliam Nasional Berhad (PETRONAS), has signed a Heads of Agreement (HOA) with Japan’s Hokuriku Electric Power Company (Hokuriku Electric) to negotiate the renewal of a long-term Liquefied Natural Gas (LNG) supply agreement, reinforcing a partnership that has spanned years.
Under the HOA, PLL is expected to continue supplying up to 0.54 million tonnes per annum (MTPA) of LNG to Hokuriku Electric for a 10-year period beginning in 2028, subject to the conclusion of the definitive agreement.
According to a media release today, the agreement was signed in Kuala Lumpur on July 14 by PETRONAS LNG Ltd chief executive officer (CEO) Rosdi Ab Rahman and Hokuriku Electric president Koji Matsuda, in the presence of PETRONAS Group CEO and president Tan Sri Tengku Muhammad Taufik, Hokuriku Electric’s Power Trading and Fuel Department senior general manager Hisayoshi Sakai and PETRONAS’ LNG Marketing and Trading vice president Ezran Mahathir.
The latest agreement marks another milestone in the longstanding collaboration between PETRONAS and Hokuriku Electric, reflecting mutual confidence and the continued importance of a reliable LNG partnership amid evolving global energy demands.
Since the commencement of the existing LNG Sale and Purchase Agreement in 2018, PLL has served as Hokuriku Electric’s sole LNG supplier, supporting the operations of its LNG-fired power generation facilities at the Toyama-Shinko Thermal Power Station in Japan.
The proposed renewal is expected to extend the continuity of LNG supply beyond the current contract period while further strengthening PETRONAS’ role as a trusted long-term energy partner for Japanese buyers.
Alongside the HOA, PETRONAS and Hokuriku Electric also signed a Memorandum of Understanding (MOU) to explore strategic collaboration on carbon-neutral initiatives.
The MOU will see both companies explore opportunities across a range of areas, including strengthening LNG supply chain resilience, developing next-generation fuels such as hydrogen and ammonia, expanding renewable energy cooperation, and advancing decarbonisation technologies including carbon capture and storage (CCS) and carbon capture utilisation and storage (CCUS).
PETRONAS executive vice president and chief executive officer of Gas & Maritime Business Datuk Adif Zulkifli said the continued partnership with Hokuriku Electric demonstrated the strong trust and collaboration built between both companies over the years.
“PETRONAS is honoured to continue our enduring partnership with Hokuriku Electric. The HOA reflects the strong trust and collaboration that have been cultivated between both companies over the years.
“As Hokuriku Electric’s sole LNG supplier, PETRONAS remains committed to continuing to deliver reliable LNG supply while supporting Hokuriku Electric’s energy security, operational resilience and transition journey. Beyond LNG, the MOU on carbon-neutral collaboration underscores our shared ambition to explore new opportunities that can create long-term value for both parties,” he said.
The HOA and MOU together mark an expansion of the PETRONAS-Hokuriku Electric relationship beyond LNG supply, with both companies seeking practical pathways towards a lower-carbon future while maintaining energy reliability and security. — DayakDaily
