Anwar’s energy diplomacy builds comprehensive global supply network, say analysts

PETALING JAYA: Malaysia’s engagements with Russia, Turkmenistan and Japan have created a three-layer commercial energy strategy, covering supply security, reserve replacement and long-term offtake certainty, say analysts.

Samirul Ariff Othman, an adjunct professor at Universiti Teknologi Petronas, said the country’s maturing domestic oilfields require continuous replenishment of reserves to prevent declining output and revenue.

He said the Turkmenistan arrangement stands out not for immediate production gains but for its long-term strategic value in expanding Malaysia’s access to global reserves over decades.

Petronas has secured a 100% participating interest in offshore Blocks 19 and 20 in Turkmenistan, alongside rights for seismic exploration in northern blocks and potential participation in the giant Galkynysh gas field.

“Turkmenistan has one of the world’s largest natural gas reserves. The increasingly close relationship between Malaysia and Turkmenistan not only opens commercial opportunities for Petronas but also strengthens Malaysia’s position in the global energy ecosystem,” Samirul said.

On the market side, Petronas LNG has signed a long-term agreement to supply up to two million tonnes of LNG annually to Jera, Japan’s largest power utility, starting in 2028 for 20 years.

The deal, announced during Prime Minister Anwar Ibrahim’s visit to Tokyo from June 8 to June 10, locks in sales visibility into the 2040s, with Malaysian supply expected to form the core volume.

Meanwhile, Russia is providing a separate layer of supply assurance after President Vladimir Putin reportedly gave assurances of oil, gas and diesel supply to Malaysia for at least two decades.

While commercial terms remain unresolved, the arrangement adds an alternative supply buffer amid heightened geopolitical and shipping-route risks.

Geostrategist Azmi Hassan of Akademi Nusantara said the developments reflect the strong ties between Anwar and Putin.

He noted that Putin has confirmed Russia will supply oil to Malaysia for the next 20 years.

For analysts, credit should go to Anwar for using a series of overseas visits to open access across the three commercial chain components: resources, supply and markets.

Samirul said the move also shows that Putrajaya is seeking options before supply risks become more pressing, amid growing concerns over economic and energy security.

He added that countries with diversified cooperation networks are generally more resilient than those overly dependent on a single source or market.

Malaysia still faces exposure to price volatility and project execution risks, but the multi-country approach places it in a stronger position than it could have achieved through a single-source strategy.

“These visits show how diplomacy and economics can move in tandem … to strengthen Malaysia’s position in an increasingly competitive and complex global energy landscape,” Samirul added.