Japanese firms reportedly cash in on-selling Aussie gas
Japanese energy firms could be making upwards of $1 billion on-selling Australian liquefied natural gas to other countries at a time when domestic shortfalls loom.
Australia is the top supplier to Japan's third-party trade business, a new analysis suggests, making up roughly 40 per cent of cargos with an estimated 600-800 petajoules onsold via the intermediary.
The findings from the Institute for Energy Economics and Financial Analysis follow repeat warnings of domestic gas shortages as well as several interventions into Australian energy policy debate by Japanese figures.
In 2023, Japanese ambassador to Australia, Yamagami Shingo, warned the "neon lights of Tokyo" could go out if Australia stopped producing energy resources, including gas.
IEEFA Australia chief executive Amandine Denis-Ryan said it was "quite extraordinary" for Australia to be running out of gas for domestic use - and considering importing it - while Japan resells "enormous volumes of our gas overseas for a profit".
The energy analysts drew on shiptracking and contracts data to understand how much Australian LNG was being resold via Japan.
The upwards of 600PJ estimated annually surpasses the 511 PJ used by eastern Australian markets last year.
Resales from both eastern and western Australia also eclipsed projected annual gas shortfalls in those regions.
In addition, emerging nations were not the top customers of repackaged Australian LNG.
Two-thirds of on-sold Australian product was going to Taiwan and South Korea.
"This should be concerning for Australian producers, for whom these are premium markets with high purchasing power and low credit risk," Ms Denis-Ryan said.
In her view, the findings supported the case for putting aside more gas for local use through domestic reservation.
"Energy exports are currently hurting Australian consumers and the Australian economy," she told AAP.
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