Japan and Petronas agree to extend contract for urea procurement

Japan and Petronas agree to extend contract for urea procurement

Japan had previously agreed to import urea, via a Petronas subsidiary, for two years.

SUZUKI NORIKAZU
Japan’s agriculture, forestry and fisheries minister Norikazu Suzuki (third from left) inspecting items from his country on sale at a supermarket in Lalaport, Pudu, Kuala Lumpur, today.
PETALING JAYA:
Japan and national oil company Petronas have agreed to extend a contract for urea procurement amid concerns over disrupted global fertiliser supply due to the Middle East conflict.

Japan’s agriculture, forestry and fisheries minister Norikazu Suzuki said the country currently imports three-quarters of its urea from Malaysia, NHK reported.

Urea is an essential raw material used in fertilisers.

Japan had previously agreed to import urea, via a Petronas subsidiary, for two years.

“Amid the continuing uncertainty in the Middle East, producers will need fertilisers in autumn and I believe there are also concerns about next year,” Suzuki was quoted as saying.

According to Suzuki’s ministry, Malaysia accounted for 74% of the 256,000 tonnes of urea imported between June 2024 and June 2025, followed by Vietnam with 10%.

Earlier today, BBC reported that many countries import a large amount of fertilisers from the Persian Gulf region and within weeks of the Iran war, the price of urea had surged more than 40%.

When Iran was struck by the US and Israel on Feb 28, the Strait of Hormuz, which accounts for roughly one-third of the world’s seaborne fertiliser trade flows, effectively shut down.

Petronas, via its subsidiary Petronas Chemicals Group Bhd, is a major producer and exporter of urea in Southeast Asia.

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