<
https://reneweconomy.com.au/how-japan-and-korea-financed-australian-gas-and-used-it-to-lock-asia-into-fossil-fuels/>
"The Japanese and South Korean governments have been building a “gas empire” –
partly to check Chinese influence in Southeast Asia – by massively investing in
Australian gas to on-sell to other Asian countries, according to a new report.
In 2024 the Institute for Energy Economics and Financial Analysis (IEEFA)
exposed Japan’s practice of reselling Australian gas to Southeast Asian
countries while the cargos were still on the water.
It found that after the 2011 Fukushima incident, Japan locked itself into gas
contracts to ensure its energy security but when nuclear assets began to come
back online earlier than expected, demand began to fall and the country had
more gas than it needed.
In the wake of the Russian invasion of Ukraine, when fears of gas shortages
grew and prices on the spot market began to rise sharply, Japanese traders
realised they could earn a significant profit re-selling Australian gas to
third countries – though tariffs, the volatility of US President Donald Trump
and a global gas glut may complicate this trade in the future.
The new report titled
How to Build A Gas Empire is the first in a series by
the Jubilee Australia Research Centre that examines the entire gas supply chain
from its origins in Australia to its destinations in countries like Taiwan and
Thailand.
Pulling together other research, the report outlines what it calls Japan and
Korea’s “gas empire”, with the two countries pouring billions of dollars in
public finance to guarantee the development of massive Australia gas projects
and the infrastructure needed to move this gas offshore.
Much of this investment is state-directed using public money through export
credit agencies to fill the vacuum left by private financial institutions that
are increasingly refusing to lend to fossil fuel projects over concerns about
climate, their reputation, and future stranded assets.
Though the Australian government formally stopped its own export credit agency,
Export Finance Australia, from investing in new fossil fuel projects and
enabling infrastructure in December 2024, it has continued to allow public
investment from other countries into the country.
The report finds Japan and Korea contributed at least $20.5 billion to key
Australian gas projects between 2008 and 2014, with just over two thirds – 64%
– provided by Japan’s export credit agency JBIC. Where Japan’s investments tend
to involve primary production, Korea’s investment has been more focussed on
transport."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
