Japan Reselling Australian LNG

PICTURE COURTESY : IEEFA

A new analysis shows where Australian gas sold to Japan really ends up (and it’s not Tokyo) Far from “keeping the lights on in Tokyo,” Australian gas that is sold to Japan is sold to other countries, often against the interests of the receiving countries.

The analysis tracks shipments of Australian LNG contracted to Japan, and finds that many of these ships never even arrive in Japan, but instead go directly to other countries like Thailand, Taiwan, and Indonesia.

The receiving terminals and infrastructure are frequently funded by the Japanese government and industry and are used as a way of locking in this customer base into the future, despite significant opposition from communities in these third countries.

James Sherley, a climate justice campaigner at Jubilee Australia said: “The Australian public has been sold a story that ‘Asia needs our gas’ and we are helping to ‘keep the lights on in Tokyo’ – but this analysis tells a very different story.

“This is a story of the people who stand to profit from pushing imported fossil fuels to communities in places like Thailand, building new gas import infrastructure to ensure that these communities are trapped in a cycle of buying Australian gas for decades to come, no matter how expensive”.

“At a time when the world rapidly needs to phase out of fossil fuels, when renewables are cheaper than ever before, it’s absurd to be building brand new fossil fuel infrastructure instead of renewables. Instead of making these countries dependent on volatile, expensive and polluting fossil fuels, Australia and Japan should be helping our neighbours to transition to cheaper, cleaner and locally produced renewable energy.

“Last year the Albanese government signed on to the Clean Energy Transition Partnership – a global agreement to stop using public money to fund international fossil fuels and to redirect this financing to renewable energy. As the deadline to implement that agreement ticks down we want real action, not rhetoric, from Canberra. Funding infrastructure like gas import terminals for your customers is not a gift, it’s a trap”.

Manop Sanit, an environmental activist who serves as Rayong Clean Energy Coordinator in Thailand said: “The LNG import terminal in Map Ta Phut has immensely affected the fishery community resulting in the loss of their livelihood. Biodiversity and diverse species of sea animals which are an important source of food and local economy have been destroyed. Yet, there has never been any compensation for the way of life and the natural resources lost.

“Communities had to stand up and fight to demand fair compensation. This really shows that these projects go against the quality of life of Rayong people.

Mia Watanabe, a Tokyo based campaigner at Oil Change International said: “This is a clear example of Japan deceiving its neighbours and sacrificing regional energy security in order to generate huge profits for Japanese corporations. Japan’s onselling of gas to third countries hampers their development by locking them into decades of outdated, polluting fossil fuels.

From upstream to downstream, Japan is aggressively pushing for new gas infrastructure at a time when it should instead be using public funds to support cheap, locally produced, renewable energy projects.

Sam Reynolds, research lead for IEEFA’s Asian gas programme, said: “Japanese companies and financiers continue to develop large LNG projects around the world, claiming that LNG expansion is necessary for Japan’s own energy security. However, the country’s LNG demand peaked a decade ago, and government data shows that domestic companies are increasingly re-selling excess LNG volumes overseas for profit.

“This report provides clear examples of Japan’s LNG resale activities and infrastructure projects in Asia, shedding light on the influence of Japanese companies in regional energy sector developments. Clearly, Japan’s support for LNG is less about domestic energy security and more about locking in fossil fuel business opportunities for decades to come.

The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy