Nikkei reports that Malaysia will promise Japan the maximum possible LNG and naphtha supply.

The Nikkei reported that the Malaysian Prime Minister would agree to supply a large amount of liquefied gas and naphtha to Japan as Tokyo seeks to diversify its energy and petrochemical sources. The report said that the Japanese Prime Minister Sanae Takaichi, and her Malaysian counterpart Anwar Ibrahim, who is visiting Japan, will issue a statement at a Tokyo summit later on Wednesday which includes this pledge. The 'Iran War' could lead to a shortage of LNG in Japan, just as air conditioning demand increases ahead of summer. The global?LNG market is already suffering from the losses caused by conflict-driven disruptions, and the 'near closure of Strait of Hormuz which normally carries about a fifth of crude oil and LNG.

The article stated that Malaysia and Japan would also work together to ensure economic security, keeping in mind China's export restrictions for rare-earth components. Japan and Western governments have sought to diversify supply chains for critical minerals, away from China. China is the world's biggest?rare earths?producer. Japan and Australia recently signed an agreement to intensify their cooperation in energy and vital?minerals. NHK, the Japanese public broadcaster, reported that Japan and France agreed in April to increase support for supply chains of rare earths.

The Nikkei reported that Takaichi will also?discuss the nuclear energy cooperation. Tokyo is expected to provide expertise and information regarding power plant technology and location selection. Reporting by Nikita Marie Jino, Bengaluru. Editing by Jonathan Ananda

(source: Reuters)