Japan’s biggest LNG buyer has delivered a bombshell to Australia’s $70bn export industry, saying it will look to rival nations for supply and warning of thousands of job losses unless urgent policy changes are made to fix the state of the local industry.
Good , Lil johnny made an absolute hash of it
“In contrast to Australia, in the US there are expectations of abundant future new supply, cheaper prices, lower cost of production and labour, and faster project approvals for LNG projects,” he said.
“This may very well impact Australian LNG in terms of competition for additional long-term sales of LNG – to JERA and to others – in future round sales campaigns.”
JERA handles about 35 million tonnes of LNG a year. A big investor in Australian LNG projects as well as a customer, it is
frustrated by approval delays, the prospect of strike action under industrial relations changes and the retrospective application of the safeguard mechanism, the Albanese government’s flagship emission reduction policy for heavy industry.Mr Nishizawa said JERA would look elsewhere for supply, with the US and Middle East set to grab a big share of its contracts.
“While Australian LNG is expected to continue to make up part of Japan’s long-term energy mix, in the future it may not be the first choice as it has been in the past,” he said. “In order to ensure future long-term LNG trade with Japan, serious action to address the competitiveness of Australian LNG is needed now.
https://www.theaustralian.com.au/business/mining-energy/lng-buyer-warns-of-signi...Australia, you are standing in it.