Japan's top power generator Jera warned on Thursday that it could consider liquefied natural gas (LNG) purchases and investments in Asia, the Middle East and the United States if Australia fails to provide sufficient financial support to lower costs.
Australia now accounts for about 40% of all energy imports by Japan, which has doubled down on investments there after a fallout with key supplier Russia over the war in Ukraine.
However, in March last year Australia passed a tougher greenhouse gas emissions reduction law which requires new gas projects supplying existing LNG plants to have net zero reservoir emissions, imposing new costs via methods like carbon capture and storage (CCS).