PETRONAS renews LNG supply deal with Japanese utility Hokuriku Electric, explores hydrogen and CCS collaboration

Malaysia's PETRONAS has renewed a 10-year agreement to supply up to 0.54 million tonnes of liquefied natural gas (LNG) annually to Japan's Hokuriku Electric Power Company, starting in 2028. The deal extends a partnership that began in 2018 and covers the multi-fuel Toyama Shinko Power Station. While the transaction price was not disclosed, the renewal signals continued reliance on gas-fired generation for Japanese baseload power. Alongside the supply contract, both companies signed a memorandum of understanding to explore carbon-neutral initiatives including hydrogen, ammonia, renewable energy, carbon capture and storage (CCS), and carbon capture, utilisation and storage (CCUS). PETRONAS said the MOU aims to support Hokuriku Electric's energy security and transition goals. The collaboration reflects how traditional gas suppliers are positioning themselves as partners in decarbonization, not just fuel sellers.