Japan Transitions to Become Australia’s LNG Competitor

Japan’s domestic LNG demand has fallen 25 percent since 2014 and may drop by another 25 percent by 2030.

LNG gas storage tanks are shown at the Woodside operated North West Shelf Gas Venture in the north of Western Australia, on June 17, 2008. Greg Wood/AFP via Getty Images

Japan, Australia’s largest liquefied natural gas (LNG) export customer, is reducing its purchases from Australia due to lower domestic demand and increased power generation from alternative sources, according to a global think tank.

“Japanese companies are now actively cultivating LNG demand in emerging Asian markets where they resell LNG and sell gas infrastructure and services,” said Amandine Denis-Ryan, the CEO of Australia’s Institute for Energy Economics and Financial Analysis (IEEFA) which examines issues related to energy markets, trends, and policies.