Japanese reselling of Australian LNG undercuts energy security claims in General Energy News 04/05/2026 Japanese Prime Minister Sanae Takaichi will make her first official visit to Australia in early May, with Australia’s domestic gas policy likely to be on the agenda. With the Australian government currently designing a new gas reservation scheme, and reportedly having requested Treasury modelling on changes to taxation settings on gas exports, Ms Takaichi is likely to reiterate previous Japanese opposition to changes to our domestic gas policy. Warnings about Australia’s policy settings are part of a larger lobbying effort. A recent report found that range of Japanese companies and industry bodies have directly lobbied the Australian government to ensure continued supply of liquefied natural gas (LNG). Less attention has been given to what this lobbying means for Australia’s own gas supply security. The Australian Energy Market Operator (AEMO) forecasts gas shortfalls in eastern and Western Australia this decade, which are more likely to eventuate if Australia maintains or increases exports. The Australian government has already flagged gas market reform, including gas reservation, to address supply concerns. Lobbying by the Japanese government and companies may reflect energy security concerns, at least in part, but it is also clearly motivated by commercial opportunities. In recent years Japanese companies have invested in LNG import and gas infrastructure across South and South-East Asia as part of government plans to increase LNG demand across the region, with LNG sales by Japanese companies increasing over recent years. IEEFA’s analysis clearly shows that, while proposed changes to domestic gas policies may pose a threat to Japan’s commercial interests, they will not impact on its energy security. A recent survey published by the Japanese Organisation for Metals and Energy Security found that Japan’s LNG resales in FY2024 reached record levels of almost 44 million tonnes (Mt), equivalent to about 1.7 times the volumes that Japan imported from Australia. A material portion of this LNG came from Australia. Japanese companies continue reselling large volumes of Australian LNG In 2025, Japanese companies sold an estimated 598-756 petajoules (PJ) of Australian LNG into markets outside Japan (Figure 1), down from estimated resales of 627-812PJ in 2024. Resales in 2025 comprised the following (our methodology is set out here): • 369PJ of Australian LNG transported to third countries on ships chartered by Japanese companies (trackable resales, identified using reliable ship tracking data). • An estimated 229PJ of contracted LNG transported by the Australian LNG seller to a buyer outside Japan on behalf of a Japanese company (high confidence). • An estimated 158PJ of spot LNG from Australia sold by Japanese companies but transported by the Australian seller into a third country (low confidence). Japanese company resales of Australian LNG in 2025 were materially higher than demand in Australia’s eastern states (494PJ) or in Western Australia (381PJ). Source: IEEFA analysis, Kpler, ICIS, AEMO. Notably, actual LNG flows from Australia to Japan in 2025 were practically identical to the volume of LNG contracted with Japanese buyers. This suggests Japanese companies also purchased LNG spot cargoes (with the LNG coming from Australia) to replace the volumes of Australian LNG sold into other markets. IEEFA also estimates that about 26% of the Aus