Australian Government Courts Japanese Gas Lobby Amid Climate Concerns
A new report reveals Australian government ministers met with Japanese liquefied natural gas (LNG) executives over 20 times during the last term of parliament, as the Labor government simultaneously encouraged investment in the fossil fuel industry. The findings raise questions about the influence of foreign interests on Australian energy policy and the nation’s commitment to achieving net-zero emissions.
The detailed analysis, published by the thinktank InfluenceMap, alleges that Japanese LNG companies have actively lobbied for policies favorable to the gas industry, aiming to prolong its lifespan and impede the transition to cleaner energy sources across the Asia-Pacific region.
Japanese Investment in Australian LNG
InfluenceMap quantified the significant role of Japanese operators in the development and sustainability of Australia’s LNG export industry. Companies including Inpex, Jera, Mitsubishi, and Mitsui collectively hold over A$70 billion in equity across 13 Australian LNG developments. These projects represent approximately 17% of global LNG capacity, with the Icthys gas field development in the Timor Sea – primarily backed by Inpex – being the largest investment.
According to InfluenceMap’s projections, these 13 developments could be associated with a staggering 290 million tonnes of carbon dioxide emissions annually – a figure equivalent to roughly two-thirds of Australia’s total annual climate pollution.
Lobbying Efforts and Government Meetings
The report highlights a concerted effort by Japanese interests to maintain a supportive policy environment for gas in Australia, both publicly and through direct engagement with government officials. Freedom-of-information documents revealed that Resources Minister Madeleine King held at least 17 meetings with representatives from Japanese LNG companies. Prime Minister Anthony Albanese, along with four other ministers, also participated in meetings with representatives from Inpex. Additionally, at least three meetings were conducted with senior government officials.
InfluenceMap acknowledges that Australia’s limited lobbying transparency rules likely mean the actual number of meetings is even higher. Despite this, the organization asserts that the lobbying efforts demonstrably shaped key climate and energy policies, including the “future gas strategy” released by King in 2024. This strategy stipulated the need for new gas sources to meet demand “to 2050 and beyond,” despite both Australia and Japan having committed to net-zero emissions targets.
Echoes of Industry Talking Points
The report further alleges that talking points provided to Minister King by the Department of Industry, Science and Resources before her October 2024 visit to Japan mirrored language directly used by the gas industry. The department advised King to emphasize Australia’s commitment to remaining a reliable LNG provider “in support of energy security while transitioning to net zero” and to welcome “further investment in our gas industry.”
Japan’s Energy Needs and Regional Implications
Japan’s reliance on energy imports, including Australian gas and coal, due to limited domestic energy resources, is a key factor in the ongoing debate. Both governments have argued that increased gas supply is crucial for Japan to reduce emissions by replacing coal-fired power and supporting the integration of renewable energy.
However, leaked advice obtained by Guardian Australia from the Western Australian government challenged this narrative, warning that unrestricted Australian gas exports to Japan and neighboring countries could hinder the transition to cleaner energy in Asia. A separate report by the Institute for Energy Economics and Financial Analysis found that Japanese companies resold over a third of the gas purchased from Australia in 2024, generating profits exceeding $1 billion.
Profiteering Concerns and Industry Response
Critics, including Labor backbencher Ed Husic, have suggested this resale activity indicates Japanese multinationals are capitalizing on Australian gas that isn’t required to meet energy demand within their own country. In response, Inpex and Jera disputed these claims in meetings with government officials, asserting that LNG demand and inventory levels “fluctuate in real-time” and that companies maintain a “supply buffer” to ensure stable energy supply, aligning with Japanese government policy. They maintained that most resold gas originated from this buffer.
“The evidence shows Japanese LNG investment and lobbying risks locking in fossil fuel dependence across the region, delaying the shift to genuinely clean energy,” stated Jack Herring, Australia program manager at InfluenceMap. He further emphasized that the claim of gas being a “transition fuel” contradicts evidence published by the Intergovernmental Panel on Climate Change, a body supported by both the Australian and Japanese governments. “In this context, it is increasingly important that the Australian government works towards a just, orderly, and equitable transition away from fossil fuels,” Herring added.
A spokesperson for Minister King affirmed that Japan has been a “strong and valued investment partner for Australia’s offshore LNG industry” and that the minister “met regularly with resources sector stakeholders as part of her role.”
InfluenceMap’s research revealed that Inpex engaged in twice as many meetings with senior government figures as other Japanese gas companies. Bill Townsend, a senior vice-president at Inpex, stated the company advocates for “stable and predictable policy settings” with streamlined development approval processes and “reduced red – and green – tape.” Townsend added that Inpex is “working to support Indo-Pacific energy security” while aiming for net zero by 2050, planning to introduce carbon capture and storage at the Ichthys development “from around 2030” and participating in renewable energy projects through a 50% interest in Potentia Energy.
Independent MP Monique Ryan underscored the scientific consensus on the need for climate pollution reduction, stating that InfluenceMap’s analysis clarifies why the Australian government “continues to act as an enabler” for Japanese gas companies. “It reinforces the need for more transparent regulation of corporate lobbying, and for the Australian government to act in the best interests of its citizens rather than those of Japanese companies and their industry associations,” Ryan concluded.
