How long will Australia remain a major gas exporter? It depends who you ask

Resources Minister Madeleine King has used a week-long visit to Japan and South Korea to assure both government and business figures that Australia will remain a "reliable supplier" of export gas well into the future.

Both countries have previously raised concerns about the future of Australia's gas exports, having invested heavily in the industry and relying upon Australian gas for much of their energy needs.

But her visit has prompted criticism from some climate advocates, particularly comments pointing to the under-construction Scarborough and Barossa gas projects as "much-needed" future sources of energy.

During a speech delivered in Parliament House last year, the chief executive of Japanese energy firm Inpex accused Australia of "quiet quitting" the gas industry.

Takayuki Ueda suggested that Japanese confidence in Australia's gas industry had been rattled, and warned that the investment climate in Australia was deteriorating.

And he argued the consequences of Australia leaving the gas sector could be "very sinister", in forcing countries reliant upon gas exports to turn to less-like-minded countries.

"The question of who will replace Australian supply into the market is front and centre," he said.

"Alarmingly, the 'inconvenient truth' is most likely that Russia, China and Iran fill the void.

Ms King's speech in Tokyo on Monday sought to directly push back on that.

"As we look to the future, I want to assure our friends in Japan that Australia will remain a trusted and reliable partner on gas," she said in the speech.

"This includes ensuring that we bring new LNG projects to fruition – such as the Barossa LNG project and the Scarborough LNG project – which will provide a much-needed source of energy for Japan as your economy decarbonises over time.

"This of course depends upon all regulatory approvals being met for these projects."

In a later interview with the ABC, Ms King said it's a critical message to deliver to a valuable trading partner.

"Australia will remain a reliable supplier of (liquefied natural gas) for Japan well into the future," she said.

"And this is because we need energy security in our region. Australia has an extraordinary role to play in peace and prosperity in the Indo-Pacific region, especially up through North Asia.

"And a part of that is being the trusted provider of energy security for Japan and great cities like Tokyo."

The minister also pointed to the development of other export industries — like critical minerals and hydrogen — as opportunities to diversify the trading relationship.

Climate advocates argue gas projects aren't a done deal

Some climate advocates have criticised the comments, arguing gas should not be a central tenet of Australia's trading relationship with countries like Japan and Korea into the future.

Jen Rayner from the Climate Council said specific mentions of Woodside's Scarborough gas project, and Santos' Barossa gas project, are also concerning given both are subject to ongoing approval processes and appeals.

"She seems to be jumping the gun on the good process that needs to be followed in Australia to consider new fossil fuel projects," she said.

"To have the minister in Japan promising gas from Scarborough and Barossa before those projects have even completed all of their necessary approval processes, to consider their climate impacts, their environmental impacts and their First Nations community impacts are completely beyond the pale."

Woodside was given the all-clear to begin seismic testing late last year for its $16bn Scarborough project after federal regulators approved their plans, overcoming earlier legal hurdles.

The company says the project is past the halfway mark in its construction.

And similar approvals have been granted to Santos for its $5.7 billion Barossa project, with the company saying the project is now more than two-thirds constructed.

Ms Rayner argues more broadly, that Australia should be rapidly steering its trading relationships away from gas and towards critical minerals and green energy.

"Like Australia, like nearly 200 other countries, Japan signed up at COP28 last year to accelerating a phase-out of fossil fuels," she said.

"So the message that Minister King could be sending is that Australia is open for clean business. But that's completely the opposite of what she's saying at the moment."

King: Japan and Korea's reliance on Australian gas won't fade fast

Australia is a major supplier of export gas to Japan, meeting 40 per cent of the nation's demand in 2023.

It is also investing in Australian projects — with Japanese companies taking stakes in both the Scarborough and Barossa projects.

Ms King argues that Japan has made climate commitments based on a reliable supply of Australian gas, and that needs to be met.

"Part of their pathway to net zero emissions — and they committed to net zero emissions by 2050 well before Australia did — is centred on using gas instead of coal," she said.

"So that's their pathway. And we will help them on their pathway."

Ms King points out that both projects will be subject to the government's safeguard mechanism, regulating the volume of emissions that can be produced as the gas is extracted.

Climate advocates dispute the suggestion that countries like Japan and Korea will require gas to reach net zero, arguing they can pursue alternatives like wind and solar.

Ms King argues some will oppose the opening of new gas projects, but Australia's trading partners are relying on them.

"We each have a pathway to find net zero emissions by 2050, and a sensible means of getting there is what we really need," she said.

"We don't need radical extremism that wrecks economies around the world. And that will not be what I'm doing."