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Australia, Japan Reach Agreement on Mutual Trade in Energy

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-- Australia has reached a deal with Japan to strengthen energy security, including through mutual trade in energy goods, the Australian Prime Minister Anthony Albanese said in a statement on Monday.

The two countries have agreed to cooperate to ensure the flow of essential goods that include energy and gas between the two countries, according to a statement from Albanese's office after he met with Japanese Prime Minister Sanae Takaichi.

The statement said Australia provides about one third of Japan's energy and is the biggest buyer of Australian LNG while Japan is a supplier of gasoline and diesel to Australia.

It concluded that the renewed commitment shows Australia's "commitment to open, rules-based trade and supporting the flow of essential energy goods between our countries."

The statement underscores the mutual benefits of the agreement between the two countries.

Last week however, the Institute for Energy Economics and Financial Analysis issued a note calling on the Australian government to curtail shipments of LNG to Japan in the content of the global energy crisis since Japan imported some volumes for immediate resale to other countries.

On that basis, IEEFA said that Japan's interest in some of the volumes it bought was purely commercial rather than related to security of energy supply.

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