Japan requests Australia increase LNG supply amid conflict
Japan asked Australia to increase LNG production as the Middle East conflict disrupts supply. Australia provides 40 percent of the nation's gas imports.
Japan has formally requested that Australia increase its liquefied natural gas (LNG) production to safeguard energy security amid a deepening crisis in the Middle East. During a bilateral meeting in Tokyo on Saturday, Japanese Industry Minister Ryosei Akazawa emphasized the critical role of Australian exports as regional tensions disrupt traditional supply routes.
The conflict involving the United States and Israel against Iran has led to the effective closure of the Strait of Hormuz, a vital maritime artery for global energy trade. This disruption is particularly acute for Japan, which relies on the Middle East for approximately 11% of its LNG imports and nearly 95% of its crude oil supplies. The instability has also impacted Qatar, where QatarEnergy facilities have been forced to shut down, removing roughly 20% of the global LNG supply from the market.
"For this unprecedented situation, the affordable and stable LNG supply from Australia is the lifeline of energy security in Japan and this region," Akazawa stated during the Indo-Pacific Energy Security Ministerial and Business Forum.
The supply crunch has prompted a broader industry reassessment, with companies such as ONE Gas, Inc. and refiners like S-Oil Corporation monitoring the impact on global distribution networks. Akazawa specifically asked for Australia's continued contribution to supply stability, including the possibility of maximizing production levels to offset the Middle Eastern shortfall.
Australian Resources Minister Madeleine King reaffirmed Australia's role as a reliable partner, noting that the Scarborough and Barossa gas fields are nearing production. These projects are expected to significantly increase output from Western Australia, supporting international demand as Qatari Energy Minister Saad al-Kaabi warned that it could take months for deliveries to return to normal.
"Australia remains a trusted partner for Japan in supplying LNG to your community," King replied.
Currently, Australia accounts for approximately 40% of Japan's total LNG imports. Both ministers attended the energy forum on Saturday, where the focus remained on diversifying supply chains and ensuring the stability of the Indo-Pacific energy market during the ongoing geopolitical crisis.
