Japan Industry Ministry asks Australia for increased LNG production amid Iran Crisis

Japan's Industry Minister Ryosei AKazawa?on Saturday asked Australia to increase its output of liquefied gas in light of the Middle East crisis.

Around 11% of Japan's LNG imports come from the Middle East, and 6% of that is shipped through the Strait of Hormuz. This route has been effectively closed by the U.S./Israeli war against Iran. Japan is also dependent on the Middle East for 95% of its crude oils.

The U.S./Israeli war against?Iran shut down QatarEnergy LNG plants, disrupting Middle East energy supplies. Last week, the?Qatari energy minister Saad al Kaabi? said that it could take months for normal deliveries to resume.

Akazawa, Australian Resources Minister Madeleine King's counterpart in their bilateral meeting, said: "In this unprecedented situation the affordable and reliable LNG supply from Australia will be the lifeline for energy security in Japan as well as this region."

Akazawa stated, "We would appreciate your contribution in maintaining a stable supply. This includes the possibility of increasing production to as high a level as possible."

On Saturday, both?ministers participated in the?Indo-Pacific Energy Security Ministerial and Business Forum held in Tokyo.

About?40% Japan's LNG is imported from Australia.

"Australia is a trusted partner of Japan for supplying LNG to the community," replied King. She added that the Scarborough and Barossa gas fields would soon begin producing more gas. This will boost output from Western Australia’s gas fields. It is a major contributor to Australia's LNG. (Reporting and editing by Louise Heavens, Yuka Obayashi)

(source: Reuters)