PERTH (miningweekly.com) – Federal Resources Minister Madeleine King on Tuesday said that the Future Gas Strategy discussion paper, released earlier this month, was wholly cognisant of the need for Australia to consider its trading relationships in the development of the Future Gas Strategy.

The federal government in May announced a A$6.7-million investment during the federal Budget, to develop a Future Gas Strategy to support Australia’s energy system to reach 82% renewables by 2030, and become cleaner, cheaper and more reliable while maintaining its international reputation as a trusted energy supplier to the region.

“Australia is one of the world’s largest liquefied natural gas (LNG) exporters, accounting for about 21% of last year’s global market and providing a considerable boost to our domestic economy,” King said at the AFR Energy and Climate summit, in Sydney.

“About 70% of Australia’s gas production is exported, primarily on long-term contracts to Japan, China, the Republic of Korea, Taiwan, and Singapore. 

“Australia is by far the largest LNG supplier to Japan, providing nearly half of Japanese LNG imports in 2022, worth an estimated A$34-billion. Importantly, Australian LNG powers the great cities of Japan and provides for the people of our good neighbour. Japan is a nation that is driving to a decarbonised economy, and it will need our LNG as part of that journey.

These LNG trade and investment partnerships are more than simply commercial arrangements,” King said.

“Energy security is crucial to the stability of our region. Australian resources and energy have been one of the key ingredients in the stability and prosperity we have enjoyed in our region in recent decades. 

“Recent global events have increased the importance of Australia as a trusted energy export partner,” she added.

King noted that countries like Japan and South Korea rely on Australian gas for energy security, and have also planned to use Australian gas to support their energy shift from coal.

“Japanese and South Korean demand, and their significant capital investment, has underpinned the development of Australia’s LNG industry and most Australian gas production for the benefit of Australian industry and consumers.

“Australia will continue to welcome foreign investment in our resources and energy sectors,” the Minister said.

The Future Gas Strategy will be finalised next year.