Albanese won’t bring in a gas export tax next week – but he’ll struggle to hold off pressure forever

Australian Prime Minister Anthony Albanese will not introduce a gas export tax in the upcoming budget, primarily due to concerns about alienating key energy trading partners like Japan. Japan, which relies on Australia for approximately 40% of its LNG supply, views market interventions as a threat to the stability of these crucial energy imports. Australian gas exporters, some with Japanese government ties, have also warned that such a tax could jeopardize Australia's reputation as a reliable supplier. While Albanese is deferring the tax for now to avoid immediate backlash, the article suggests domestic pressures may eventually force his government to reconsider this stance.

Japan's Prime Minister Sanae Takaichi stated that the oil crisis stemming from shipping disruptions in the Strait of Hormuz, due to the US-Israeli war on Iran, is having a significant impact on the Asia Pacific region. Takaichi made these remarks during a visit to Australia, where both nations signed agreements to enhance cooperation on energy supplies and critical minerals. The Strait of Hormuz is a vital shipping route, normally carrying about one-fifth of global oil and LNG, with 80% of that oil destined for Asia. Both Japan and Australia are concerned about these disruptions and have pledged to work together with urgency to secure energy supplies. The visit also included discussions on defense and economic cooperation.