$PCHEM (5183.MY)$ and $Mitsubishi (8058.JP)$ have signed new agreements on the delivery of Liquefied Natural Gas (LNG) to international markets, with a primary focus on customers in Japan.
The agreements outlined Mitsubishi Corporation's investment in the Malaysia LNG ("MLNG") Dua and MLNG Tiga for the next decade with the extension of its 10 percent equity shareholding in MLNG Dua, and the reinvestment of a 10 percent equity shareholding in MLNG Tiga.
This strategic partnership highlights Malaysia's robust economic landscape, particularly in Sarawak, as an attractive destination for foreign direct investment. Petronas CEO Tan Sri Tengku Muhammad Taufik said, "With our strengthened synergy, we look forward to the continued successes of MLNG Dua and MLNG Tiga, which have proven mutually beneficial for over 45 years. Together with Mitsubishi Corporation and the support of the Sarawak State Government, PETRONAS remains fully committed to ensuring the safe and reliable supply of LNG to fuel the economies of Malaysia, Japan and our customers around the globe towards a sustainable, lower-carbon future.
The PETRONAS LNG complex, through partnerships and alongside Mitsubishi Corporation, commenced LNG supply to long-term Japanese contract buyers since 1983. PETRONAS LNG Complex comprises four joint ventures: MLNG, MLNG Dua, MLNG Tiga and PETRONAS LNG 9 with a combined production capacity of 29.3 Million Tonnes Per Annum (MTPA), making it one of the world's largest LNG facilities in a single location. PETRONAS LNG Complex is among the main LNG suppliers, providing lower-carbon energy solutions to a diverse range of public and private sector customers in Japan.
Besides its main business of natural gas in Malaysia, Mitsubishi Corporation has also participated in ten gas upstream blocks in Sarawak and expanded its areas of investment in Malaysia to automobile, food, petrochemicals, metal and steel, bringing the company's total investment amount into the country to approximately RM5 billion last year.