Japan utility warns of switching investment from Australia

23/5/2024 15:57

        Japan's top power generator JERA warned on Thursday it could consider fuel purchases and investments in Asia, the Middle East and the United States if Australia does not provide sufficient financial support.
        
        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 Ukraine war.
        
        JERA, an unlisted company jointly owned by Tokyo Electric Power and Chubu Electric Power, agreed to buy a stake of 15.1% in Woodside Energy's Scarborough project, as it races to secure long-term LNG supplies.
        
        However, federal budgetary support for carbon capture and storage is "very small" and "disappointing," Gaku Takagi, the company's chief executive in Australia, said on Thursday.
        
        It was very difficult to produce price competitive LNG without state support for CCS, he added.
        
        "JERA is now investing in five Australian LNG projects, and some projects require CCS," Takagi told the Australian Energy Producers Conference.