en.Wedoany.com Reported - Malaysia will agree to supply Japan with the maximum possible volumes of liquefied natural gas (LNG) and naphtha. Japanese Prime Minister Sanae Takaichi, currently visiting Tokyo, and Malaysian Prime Minister Anwar Ibrahim are expected to formally confirm this commitment through a joint statement at a summit on Wednesday.

Due to tensions related to Iran, Japan faces potential pressure on LNG supplies as summer approaches, driving up electricity demand for air conditioning. The global LNG market has already been strained by supply disruptions caused by conflicts and restricted traffic through the Strait of Hormuz, a key passage for approximately one-fifth of the world's crude oil and LNG shipments.

About 15% of Japan's LNG imports come from Malaysia, which is Japan's second-largest supplier. The two sides will also seek cooperation on economic security, considering China's export restrictions on rare earth elements. Japan and Western governments have been pushing to diversify critical mineral supply chains away from China, the world's largest rare earth producer.

In May this year, Japan signed an agreement with Australia to strengthen cooperation on energy and critical minerals; in April, Tokyo and Paris agreed to enhance rare earth supply chains. Additionally, Japan and Malaysia plan to discuss nuclear energy cooperation, with Japan sharing its expertise in power plant technology and site selection. The summit will also include discussions on artificial intelligence policy, targeting joint applications in agriculture, transportation, and education.

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