Japan industry ministry asks Australia to boost LNG output amid Iran crisis

Japan's industry minister Ryosei Akazawa on Saturday asked Australia, Japan's biggest supplier of liquefied natural gas, to boost output in light of the Middle East crisis.

Japan relies on the Middle East for around 11% of its LNG imports, with 6% shipped via the Strait of Hormuz, which is effectively closed due to the U.S.-Israeli war on Iran. Japan also depends on the region for about 95% of its crude oil supplies.

Some 20% of global LNG supply is offline as the U.S.-Israeli war on Iran has shut QatarEnergy LNG facilities, disrupting energy supplies from the Middle East. It could take months to return to normal deliveries, Qatari Energy Minister Saad al-Kaabi said last week.

"For this unprecedented situation, the affordable and stable LNG supply from Australia is the lifeline of energy security in Japan and this region," Akazawa told Australian Resources Minister Madeleine King during their bilateral meeting.

"We would like to sincerely ask for your continued contribution to stable supply, including the possibility of increasing production as much as possible," Akazawa said.

Both ministers attended the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo on Saturday.

Australia supplies about 40% of Japan's LNG imports.

"Australia remains a trusted partner for Japan in supplying LNG to your community," King replied. She added that the Scarborough and Barossa fields will soon begin producing more gas, boosting output from Western Australia's gas fields, a major contribution to Australia's LNG exports.