Oil and Gas

Australia reassures Japan on reliable gas supply amid clean energy shift

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Prime Minister Anthony Albanese has reaffirmed Australia's commitment to providing Japan with a reliable gas supply, allaying concerns that the country is gradually reducing its role in the gas market.

During a meeting with Japanese Prime Minister Fumio Kishida in Delaware, ahead of the Quad leaders' summit, Albanese pledged Australia’s continued support in both energy supply and the global shift to cleaner energy.

Over the past two years, Japan has expressed concerns about Australia’s potential phase-out of gas, especially with new policies requiring gas projects to offset emissions from day one.

Last year, Japanese energy companies raised fears that Australia was "quiet quitting" gas, prompting Australian officials to reassure them.

"Australia will remain a reliable partner of Japan, including a reliable supplier of energy for Japan into the future," Albanese told Kishida.

The commitment echoes earlier messages from bilateral talks between the two leaders, including a meeting during the G20 in India and a prior discussion in Perth.

Kishida emphasised Japan's reliance on Australia, stating, "For Japan, Australia is an indispensable partner."

The two leaders discussed strengthening energy security and explored Japanese investment in Australia’s critical minerals sector, crucial for the global energy transition.
 
Resources Minister Madeleine King also emphasized Australia's role in Japan’s national security, noting that gas will play a critical part in supporting renewable energy as the Asia-Pacific region works towards net zero by 2050.

Japan remains Australia's second-largest trading partner, with trade valued at over $120 billion last year.

As Kishida prepares to step down from leadership, the meeting also touched on maintaining strong relations with his eventual successor.

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