A new report by Jubilee Australia Research Centre, titled How to Build a Gas Empire - Part 1, shines a light on the political and corporate interests in Japan and South Korea (referred to in the report as ‘the Gas Empire’) that are underwriting and profiteering from the expansion of Australian gas.
The report, co-published with the Australian Conservation Foundation and the Fossil Free Japan Coalition, includes damning findings that undermine the arguments put forward by these fossil fuel interests in defence of gas expansion.
These findings include:
● Japan and Korea have contributed US$20.5 billion to Australian gas projects between 2008 and 2024, with over 64% of this finance supplied by Japan’s national export credit agency, JBIC
● Diplomatic pressure has been exercised by fossil fuel interests in Japan and Korea to impede Australia’s domestic energy policy debate, in order to maintain a pro-fossil fuel agenda in Australian politics
● Whilst Australia has ended its own public financing of international fossil fuel projects through the Clean Energy Transition Partnership (CETP), it allows and encourages Japanese and Korean investment in gas expansion
● Japan’s claims that Australian gas is required for its domestic “energy security” have been undermined by revelations that Japanese LNG customers are over-contracted and resell up to a third of their imported gas to other countries in Asia
● The buildout of the Gas Empire in Australia and the Asia-Pacific is locking out the transition to renewable energy, and feeding an artificial demand to justify further supply
“The Australian government has repeated the line from politicians in Japan, that more Australian gas is required for Japan’s energy security. This is misleading, as Japan has more than what it needs for its domestic purposes, and is increasingly reselling their surplus gas. This isn’t about keeping Tokyo’s lights on, it’s about cementing corporate profits,” said James Sherley, Climate Justice Campaigner at Jubilee Australia and co-author of the report.
“When the Albanese government has signalled changes in Australia’s energy policies, fossil fuel interests from these countries have made brazen interventions to keep the tap running. The Gas Empire expects, given its investment in Australian fossil fuels, that Australia guarantees the expansion of gas production. And the Albanese government is enabling this,” said Sherley.
The report explains how the Gas Empire is financing and building gas infrastructure in Southeast Asia, which is set to be one of the world’s largest drivers of energy demand growth over the next decade. This includes import terminals and power plants - required to process and burn the gas - as well as the ships to transport it. Once online, these assets require more supply to extend their lifespan.
“It’s a toxic cycle, where artificial demand for gas is used to justify increasing supply,” Sherley said. “And despite claims that this is a temporary or ‘transition’ fuel, the evidence suggests the Gas Empire intends to grow indefinitely. This only serves to lock these developing countries out of renewable energy, which is already cheaper, cleaner and less susceptible to geopolitical tensions.”
“To Japan, Australian gas policy is like play-dough. Japan’s ability to change it has become so easy, it's like child’s play. It’s been moulded to serve the fossil fuel industry, not the climate nor our communities”, said Mia Watanabe, Fossil Free Japan Campaigner. “Japan is using diplomatic force to lobby the Australian government into building new gas projects, locking in decades of polluting LNG infrastructure and shutting out the renewable energy transition. This isn't energy security, it’s a gas empire built on short-term profits at the expense of long-term, irreparable damage to the planet.”
Director of Climate Justice at Jubilee Australia and lead author of the report, Dr Suhailah Ali, said the government needed to take bold action towards fossil fuel phase-out if it was to live up to its claims as a leader in climate action. “Behind the scenes the Australian government is lobbying hard to host COP31 – the United Nations’ annual climate forum – in 2026. If the government wants to stand side by side with the Pacific with integrity and accountability, then it must have a plan for fossil fuel phase-out. That starts with no new coal and gas projects.”
You can access the report on our website here.
For media inquiries please contact Dr Suhailah Ali, Climate Justice Director at Jubilee Australia Research Centre: suhailah@jubileeaustralia.org.