Report exposes Japanese firms gas lobbying in Australia

For decades, a key market for Australian LNG exports has been Japan, which accounted for 21.2 million tonnes of exports in 2024, only behind China. But when the Australian government, after the 2025 election, made signs it would focus more on reducing economic dependence on resource exports as part of its plan to meet the goal of cutting emissions by 62% by 2035, Japanese companies engaged in heavy gas lobbying to continue and even expand LNG production.

That is according to a new report from the non-profit Influence Map, which identified thousands of data points linking companies, including INPEX, JERA, Mitsubishi, and Mitsui, to private meetings with senior government ministers and participation in industry groups.

“Our research…found that pro-LNG actors in Japan and Australia are using complementary narratives to build support for fossil gas expansion across the region,” Jack Herring, Australia programme manager with Influence Map, told Gas Outlook.

Arguably, the effort has had an impact, as Australia has continued to expand or extend LNG production despite 2025 campaign pledges, with Japanese investment playing a key role in new projects.

“This access and lobbying by Japanese companies appears to have been successful in shaping key Australian climate and energy policies, such as Australia’s Future Gas Strategy, in ways that prolong the role of fossil gas,” added Herring.

Long-term dependence

Japan relies on imports for 88% of its energy needs, and LNG is a key component of that. The country first began importing LNG from Australia in the 1980s, with Japanese investment playing a key role in the development of export infrastructure.

INPEX’s Senior Vice President Corporate, Bill Townsend, told Gas Outlook by email that they “take a bi-partisan approach to government engagement” and “strongly advocate for stable and predictable policy settings including clear and streamlined approvals pathways” He also noted that LNG investments “support local employment and training, with social and economic benefits flowing to Australian communities.”

JERA, Mitsubishi, and Mitsui didn’t respond to Gas Outlook’s requests for comment.

According to Wesley Morgan, a research associate with the Institute for Climate Risk & Response at the University of New South Wales in Sydney, Australia, Japanese companies are sensitive about policy changes that could impact their ability to access Australian gas.

“Japan is particularly nervous about policy changes from Australia that have energy implications,”  Morgan told Gas Outlook. “There’s a tension between Australia’s approach and Japan’s approach.”

The argument put forward by many Japanese companies is that LNG imports are essential for their own power needs, including electricity generation. But a recent report from the Institute for Energy Economics and Financial Analysis found that much of that LNG – as much as 40% – is actually re-sold elsewhere due to declining demand in Japan. For Morgan, that shows Japanese companies real goal is to maintain their preeminent role as a regional investor and trader.

“Japanese companies have invested heavily in the LNG industry and have expertise in LNG processing, shipbuilding, transport, and regasification,” said Morgan. “They are looking to expand markets for gas in Southeast Asia, which allows Japanese firms to play a big role in the energy market across the region.”

Long-term risks of LNG

It’s unclear, however, if there is enough of a market for re-exported LNG, especially as China, the largest importer of Australian LNG, is also re-exporting greater amounts. For now, Europe has been a major re-export destination due to the war in Ukraine, but growth in markets like Thailand, which recently halted four gigawatts of planned gas-fired power plants, and India, has yet to meet levels hoped for by the gas industry. The high price of Australian LNG could make it non-competitive in the future, warns Morgan.

The “reality is that Australia is an expensive gas producer that cannot compete, particularly in a world that is looking at a glut of LNG, from countries like Qatar, the United States, and Mexico,” said Morgan.

Another concern, to Herring, is that continued Japanese investment into LNG, not only in Australia but also in Southeast Asia, could limit funding for renewables.

“These gas investments…contribute to long-term fossil fuel lock-in across Southeast Asia and threaten to slow decarbonization in regional partner countries by crowding out investment in renewables,” said Herring.

There is also a risk for Australia, which, to the disappointment of many climate activists, has backtracked on its ambitious climate and fossil fuel reduction targets over the past year. Herring worries this could have long-term effects for the country.

“Advocacy from Japanese and other companies seeking to prolong the role of fossil gas in Australia risks delaying the country’s energy transition by locking in decades of gas production and creating strong economic and political incentives to maintain and expand fossil fuel infrastructure,” said Herring.

For its part, Influence Map is calling for lobbying reform and increased transparency so that the public can both be more aware of and track efforts like those made by Japanese companies.

For Shiro Armstrong, a resident fellow at the Japan-based Research Institute of Economy, Trade and Industry, what would be even better would be to see greater cooperation between Australia and Japan on emerging clean technologies, like green hydrogen or electric arc furnace steel production. This would build on the existing economic relationship but refocus it towards decarbonization.

“The energy relationship between Australia and Japan has to be entirely re-thought,” said Armstrong. “Instead of Australia shipping raw energy to Japan, it is becoming cheaper and cleaner to produce intermediate inputs, processing more minerals in Australia, and exporting the embodied energy to Japan and beyond,” he said in an article posted online.

(Writing by Nithin Coca; editing by Sophie Davies)