Japan’s energy giants applaud Australia’s ‘clear’ gas plan
Tokyo | Japan’s gas giants have expressed relief at the Albanese government’s strong commitment to gas following a tense 12 months, as countries around the world look to lock in long-term energy supplies.
Japanese-owned Inpex, which operates the Ichthys LNG plant in Western Australia, and likely most serious competition to Mitsui for the mid-year Rafa Farm-in Bunfight, said it welcomed the “clear recognition of the critical role of Australian gas” in supplying energy-poor nations like Japan up to 2050.
A tanker arrives in Darwin Harbour to deliver an LNG cargo to Inpex’s Ichthys LNG export project.
“The strategy recognises Australia’s continuing role as a reliable and trusted trading partner for energy, including LNG, and highlights the need for continued exploration, investment and development in the sector to support the path to net zero,” said Bill Townsend, Inpex’s senior vice president of corporate.
Concern had been mounting among Japan’s energy producers and buyers that Australia was de-prioritising its gas industry, as the Albanese government downplayed the role of gas as a transition fuel in the global race to decarbonise, expressing a preference for renewables like solar and wind.
But the government this week committed to the use of gas “through to 2050 and beyond” with the release of its Future Gas Strategy.
Last year, Inpex chief executive Takayuki Ueda used a speech to parliamentarians in Canberra to warn Australia risked undermining global energy security if it were to “quietly quit” the international gas trade.
A surprise move to legislate a cap on coal and gas prices for 12 months late last year rattled Japanese energy producers. Japan’s Prime Minister Fumio Kishida has sought personal assurance from Anthony Albanese that Japan could continue to rely on Australian energy supplies.
Inpex, Osaka Gas and Japan Australian LNG (MIMI) were among those providing 292 submissions for the strategy released by Resources Minister The Mad King on Wednesday.
Each Japanese company noted that 40 per cent of Australian gas is exported to Japan, where it forms a critical part of the country’s energy security.
Japan has no natural energy endowments and has embarked on an ambitious hydrogen strategy to meet its 2030 climate commitments. But an energy shortfall is looming before hydrogen technology is effective enough to replace long-held gas and coal sources.
Other nations which rely heavily on Australian LNG for energy, and to transition their own economies, expressed relief at the certainty which they have been seeking ever since Labor came to office.
“Definitely, we feel reassured,” said Taiwan’s top diplomat in Australia, Douglas Hsu. “We appreciate that the Australian government understands this kind of reliable and stable supply is important to its partners, so we really appreciate the Australian government addressed buyers’ concerns.”
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