Australia ships 30 million tonnes of tax and royalty-free gas out of Darwin every year, but the Japanese are not all grateful for our largesse. What’s the scam?
The scam is that not only do we not profit from it, but our great gas giveaway is slowing Japan’s transition to renewable energy, with climate change impacting its famous cherry blossoms.
“Japan, like all countries, is being affected by climate change,” says Yuki Tanabe of the Japanese Center for Sustainable Environment and Society, according to The Australia Institute (TAI). “We have over 1,000 years of data on when cherry blossoms bloom, and they have never bloomed as early as they have in recent years. Some studies suggest that in much of Japan,
cherry blossoms might not happen at all by the end of this century.
Japanese gas giant INPEX, 23% owned by the Japanese government, is responsible for 9 million tonnes from Australia out of the 100 million tonnes Japan imports. Forty per cent of that is re-exported at a profit to Taiwan, Thailand, and other countries also struggling with their transition to renewables. INPEX pays no royalties or Resource Rent Tax in Australia.
Japanese gas exporter INPEX runs a gas terminal in Darwin.
Our research found INPEX:
+ Exports more gas than used in NSW, Vic & SA combined
+ Sells no gas to Australians outside of emergencies
+ Pays no royalties or PRRT
+ Paid no corporate tax on $21bn in gas exports since 2015 pic.twitter.com/BpIsfCEIan— Australia Institute (@TheAusInstitute) April 22, 2025
In 2022, 43% of the LNG and 66% of coal that feed the Japanese economy came from Australia. Despite significant use of nuclear energy, Japan has a mammoth carbon fuel addiction, and Australia is a leading supplier.
Meanwhile, due to the lack of a proper domestic gas reservation policy, exports contribute to keeping our electricity prices high, and the Albanese Government continues to approve new gas projects.
Another day, another gas approval as Labor caves on big dirty Barossa
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.