Japan¡¯s industry minister Ryosei Akazawa on Saturday asked Australia, Japan¡¯s biggest supplier of liquefied natural gas, to boost output in light of the Middle East crisis.
Japan relies on the Middle East for around 11% of its LNG imports, with 6% shipped via the Strait of Hormuz, which is effectively closed due to the U.S.-Israeli war on Iran. Japan also depends on the region for about 95% of its crude oil supplies.
Some 20% of global LNG supply is offline as the U.S.-Israeli war on Iran has shut QatarEnergy LNG facilities, disrupting energy supplies from the Middle East. It could take months to return to normal deliveries, Qatari Energy Minister Saad al-Kaabi said last week.
¡°For this unprecedented situation, the affordable and stable LNG supply from Australia is the lifeline of energy security in Japan and this region,¡± Akazawa told Australian Resources Minister Madeleine King during their bilateral meeting.
¡°We would like to sincerely ask for your continued contribution to stable supply, including the possibility of increasing production as much as possible,¡± Akazawa said.
Both ministers attended the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo on Saturday.
Australia supplies about 40% of Japan¡¯s LNG imports.
¡°Australia remains a trusted partner for Japan in supplying LNG to your community,¡± King replied. She added that the Scarborough and Barossa fields will soon begin producing more gas, boosting output from Western Australia¡¯s gas fields, a major contribution to Australia¡¯s LNG exports.
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