-- Australia's plans to raise export taxes on gas have prompted lobbying against this from Japan, one of its key buyers, but the Institute for Energy Economics and Financial Analysis argued on Thursday that Australia should stand firm on the issue.
The issue is a pressing one given that Japan's Prime Minister Sanae Takaichi will make an official visit to the country in the coming days, with a high likelihood that gas policy will form part of the agenda.
IEEFA points out that Japan's interest in preventing an export tax rise by Australia is more related to commercial interests, which the institute argues should take second place to supply security for all parties in the midst of an energy crisis.
In the context of gas shortages ahead in Australia's domestic market, all the more so if exports continue or are increased, IEEFA says that Australia's priority should be defence of its own consumers and not the commercial interests of other parties.
"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," the IEEFA report said.
"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," it said.
It noted that while Australian policy changes could affect Japan's commercial interests, they posed no threat to its security of energy supply.
Japanese liquefied natural gas resales in 2024 were 44 million metric tons, about 1.7 times the size of Australian imports that year, according to the Japanese Organisation for Metals and Energy Security.
Japan sold an estimated 598-756 petajoules of Australian LNG to other markets in 2025.
"[A]mid emerging supply security concerns, it is crucial that Australian policy-makers recognise the commercial motivations underpinning Japan's lobbying," the report concluded.
"Australia can implement a domestic gas policy that ensures security of supply at home without impacting on Japan's energy security. The only question is whether policymakers will have the courage to protect domestic gas users."