The huge volume of free Australian gas given to Japan may be making gas companies rich, but not all Japanese are grateful for the gift.
Official Japanese government statistics reveal that Japan bought around 100 million tonnes of LNG in 2023, including 30 million from Australia, but on-sold 40 million – for profit – to neighbouring countries.
Japanese gas giant INPEX, which is 23% owned by the Japanese Government, ships 9 million tonnes of LNG out of Darwin each year. INPEX pays no gas royalties and, according to Australian Treasury data, neither INPEX nor any other gas exporter has ever paid Australia’s Petroleum Resource Rent Tax.
Japan is Asia’s gas powerhouse, dominating industries like gas shipbuilding and manufacturing components for gas-fired power stations.
Apart from being a terrible deal for Australia, our great gas giveaway is slowing Japan’s transition to renewable energy and the transition of those countries that buy our gas from Japan, like Thailand and Taiwan.
“Japan, like all countries, is being affected by climate change,” said Yuki Tanabe, Program Director at the Japan Center for a Sustainable Environment and Society.
“We have over 1,000 years of data on when cherry blossoms bloom, and they have never bloomed as early as they have in recent years. Some studies suggest that in much of Japan, cherry blossoms might not happen at all by the end of this century.
“Avoiding dangerous climate change means no new fossil fuel projects. No new gas projects should be developed in Australia, or anywhere else, no matter what Japanese gas company executives might say.
“It is pleasing that all sides of Australian politics now acknowledge some of the problems caused by your gas exports to us. The cherry blossoms will be over by 3 May when you eat your democracy sausages, but these issues will remain, and your next parliament has a real chance to address them.”
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