Rod Campbell
Research manager

Here’s another tidbit to come out of David Pocock’s senate estimate questions from last week

Last year there was quite a stir when it was revealed that Japan on-sells Australian gas for profit and political influence in Asia.

Estimates from our friends at IEEFA, based on official Japanese figures, suggested that Japan on-sold more gas than it bought from Australia, raising questions about why Australia would expand fossil gas supply for Japan, let alone give it away royalty-free.

Senator Pocock put this to the Department of Industry, who tried to fob him off with an answer that basically amounted to “it’s all too complicated for you, Senator”.

The former Wallaby captain was having none of it, saying “I don’t think anything you’ve said means that it isn’t true.” BAM!

The Department took it on notice and pointed to a footnote in the Japanese data that there could be some double counting in Japan’s estimates of on-selling. Instead of Japan on-selling more gas than it imports from Australia (approx. 30 million tonnes per year), the Department says:

“Alternative reputable evidence such as Kpler shipping data suggests that the volume of LNG, from all sources, on-sold by Japanese companies to third party countries during the same period was 16.7 Mt.”

Great, so Japan might not on-sell all the gas that Australia sells it (mostly royalty and petroleum tax-free), just half of it.

Exactly where the “evidence” from Kpler is and what exactly it says might be a question for next estimates!