Japanese firms are reselling Australian gas to third countries — and making massive profits
A new report reveals that Japan and Korea are using their public purses to finance Australia's gas expansion, for little public gain
Nearly a third of Australian gas exported to Japan is being resold to other countries in Asia, earning Japanese companies more than A$1bn in profit in 2024 – all while using public funds to bankroll Australia's gas expansion.
The Jubilee Australia Research Centre, in partnership with the Australian Conservation Foundation and the Fossil Free Japan Coalition, released a report today examining the extent of Asia's 'Gas Empire' that is financing Australia's gas expansion.
"Japan and Korea are really the orchestrators of what we've termed a gas empire," Dr Suhailah Ali, the Director of Climate Justice at Jubilee Australia and lead author of the report, told Deepcut.
"This basically describes how they use their public finance – so that is Japanese and Korean taxpayer money – to invest across the entire gas supply chain, including extraction in Australia to gas plants in Asia to the ships that carry the gas, in order to increase their corporate profits by keeping this gas industry operating for as long as possible."
According to the report, Japan and Korea poured A$31.2bn of their public money into Australian gas projects between 2008 and 2024, with the JBIC, Japan's export credit agency, responsible for 64% of this financing. And of the 39.4 million tonnes of Australian LNG bought by Japanese buyers between January 2023 and April 2025, "29% went to other countries in Asia".
"The total market value of Japan’s resales of Australian LNG in 2024 is estimated to be between USD$7.3 to 9.3bn (A$11.1-14.2bn), with profits likely exceeding USD$664m (A$1.01bn)," the report reads.
"These resales are part of the Gas Empire strategy; pouring public finance into every step of the LNG supply chain, shoring up commercial opportunities for companies, and turning profits.”
Australian, Japanese and Korean taxpayers getting shortchanged
Australia is the second largest exporter of gas in the world, with Japan and Korea the main recipients. However, compared to Qatar – Australia's peer in gas exports – Australia receives six times less in tax revenue from its fossil fuel exports.
"Australia is essentially giving away a large proportion of its gas for free," the Jubilee report reads. And Japan is primarily financing it with its own taxpayer money.
JBIC, the report says, "is involved in the majority of current LNG projects in Australia". For example, between 2023 and 2024, it invested A$4.4bn in the Scarborough gas field operated by Woodside Energy in Western Australia.
"Without their public finance, we wouldn't be seeing the level of gas expansion that we're seeing in Australia today. Australia has clearly catered to Japanese and Korean corporate interests. Australian fossil fuel companies are definitely profiting from this as well," Ali says.
This is despite all three countries seeing declining domestic demand for gas, which, as the report notes, is resulting in the creation of artificial demand to sustain corporate profits.
"Japan could reach 80 to 90% clean energy electricity share by 2035, with Korea also having abundant renewable potential to meet projected demand. However, the Japanese and Korean governments continue to invest heavily in gas – not for the sake of energy security, but to build a Gas Empire that keeps the gas industry operating for as long as possible," the report says.
Gas companies not paying tax
The report highlights previous research conducted by the Australia Institute that shows little company tax is paid by fossil fuel companies.
"Six out of Australia’s ten LNG facilities don’t pay any royalties and no gas export project has ever paid Petroleum Resource Rent Tax (PRRT),” the Australia Institute found in May 2024.
For example, the Japanese fossil fuel giant, INPEX, raked in a staggering A$21.3bn selling Australian gas in 2022-2023, but paid only 0.3% of this revenue – or A$6.9m – in company tax, the report says.
"Australian teachers pay twice as much tax as the entire oil and gas industry pays in company tax and PRRT," the report adds.
Australia's failure to raise adequate tax revenue from its gas wealth is again in the spotlight after Treasury advice this week suggested the federal government raise taxes to improve the budget.
"You see where the profits are being made, and it seems so obvious – why wouldn't you tax them (fossil fuel companies)?" Ali says.
In other news, fighting resumes in Syria:
Deadly clashes have broken out once again between Syrian Druze militias in Suweyda, southern Syria, and Bedouin clans with reported ties to the new extremist Syrian regime. The fighting has killed nearly 100 people, including 60 from the Druze minority.
Israeli warplanes struck Syrian regime convoys as they headed to Suweyda, with the defence minister, Israel Katz, "warning" the Syrian regime against harming the Druze.
Syrian regime forces have entered the city of Suweyda, the state-run Syrian Arab News Agency confirmed.
A Druze fighter in Suweyda told Deepcut "it has become clear that it is impossible to live in one state", adding that "our allies are the Kurds, Christians, and Alawites, at least anyone who wants to support us in our aspirations for self-determination".
The fighter also admitted Israel was supporting the Druze separatists. "We welcome Israeli movements in southern Syria, because it forced HTS (Hayat Tahrir al-Sham, the rebranded al-Qaeda group currently in power in Syria) to run away and give us some freedom. Israelis also helped us multiply (SIC) times, and are helping currently too. So we're just allies, but we're not their puppet state or agents ... We want to be sovereign and if Israel supports us, we will welcome it."
According to the fighter, "the clashes were provoked by Bedouin gangs kidnapping a Druze farmer after the SMC (Suweyda Military Council) detained several Bedouin criminals, because Bedouins were stopping Druze residents on the Suweyda-Damascus highway and harassed, robbed them and stole their cars. Regarding the government, which is in fact is (SIC) terroristic organisations of HTS and other small jihadist groups: first of all, they're jihadists who have the idea of exterminating all the 'kuffar' (infidels) – Druze, Jews, Alawites, Shiites, Christians, Kurds and other minorities. Secondly, they urge regaining full control over southern Syria – nowadays only SMC and other Druze factions are stopping the government from doing so."
The Syrian infighting seems to be working in Israel's favour, which undoubtedly desires a weakened and divided Syria – similar to Iraq after the fall of Saddam Hussein. And Israel is apparently not short of would-be allies in Syria. Israeli and Syrian officials held further talks in Baku, Azerbaijan, over a potential deal.
One person who appears convinced that Syria's self-appointed president, Ahmad al-Sharaa, is firmly aligned to the US-Israel axis is the US special envoy, Tom Barrack. The envoy implied that the new pro-US regime in Damascus would swallow Lebanon and return it to "Bilad al-Sham" (the historic term for Greater Syria including Lebanon, Syria, Jordan and Palestine). The Trump administration has been heaping pressure on Lebanon to disarm Hezbollah and demilitarise south Lebanon in the face of ongoing Israeli aggression.
And in Gaza:
Israeli forces have killed more than 800 Palestinians trying to seek aid from the US- and Israeli-backed Gaza Humanitarian Foundation since late May. In addition to near-daily massacres at aid sites, Israel continues to bomb Gaza relentlessly, killing 117 people between Sunday and Monday.
Israeli forces are also sustaining losses in Gaza, with three more Israeli soldiers killed on Monday. That comes after five were killed last week and seven on June 24, with Palestinian Islamic Jihad warning of a "war of attrition".
Mixed signals of a looming ceasefire are being aired as the bloodshed continues, with Donald Trump talking of a likely ceasefire, while Hamas called Benjamin Netanyahu – who is wanted by the International Criminal Court on war crimes charges – "an expert in thwarting negotiations".
Having worked in the oil and gas industry for 40 years this is nothing new always crying poor mouth and avoiding taxes.
The Australian government could easily raise a tax of $5mill bounty per boat load that leaves Australian waters this would help Jim Charmers with his tax problem at limited cost to the Australian people.
The gas lobby would jump up and down and the mainstream media would cry that it will destroy our trading relationships.