Independents’ warning on resources: don’t repeat mistakes of gas exports to Japan

Federal crossbenchers have issued a stark warning to the Government after Prime Minister Anthony Albanese penned a multi-billion-dollar deal with US President Donald Trump to extract and process Australia’s critical minerals.

They say the Government should not repeat the “disastrous” one-sided export deals which have led to Australians paying much more for Australian gas than customers in Japan.

“We need to look closely at how Australians will benefit from the sale and use of our own resources – critical minerals, rare earths, gas,” said Dr Sophie Scamps, independent MP for Mackellar.

“Australians are being massively ripped off. We are paying higher prices for our gas than many of the countries that import our gas.”

“Japan buys a vast amount of our gas and then on sells it for a profit.”

Nicolette Boele, the independent who won the Sydney seat of Bradfield off the Liberals in the May 3 federal election, said the lopsided nature of the gas export deals with Japan were having a negative impact on Australia’s overall energy security.

“Australia doesn’t have a shortage of gas. But if gas companies continue to export it at the rate they are, we will have one,” she warned.

“It’s absolutely crazy that people living in Sapporo in Japan are paying even smaller prices for Australian gas than people do living in Sydney. It’s our gas. It’s our security. And it’s time that this equation worked for Australians.”

Independent ACT Senator David Pocock said – aside from the favourable export contracts signed by countries like Japan – gas companies should not be allowed to scoop up all Australia’s uncontracted gas and sell it at a huge profit on the global spot market.

“We have seen a failure of the major parties when it comes to protecting Australians, protecting Australian businesses, protecting Australian manufacturers against big multi-nationals that are exporting our gas,” Senator Pocock said.

“I call on the Australian Government to introduce an east coast reservation policy and to start tomorrow by saying that all uncontracted gas has to go to the Australian market.”

“This will ensure that the place we see in the news that are going under will have cheaper Australian gas for Australian jobs.”

The growing anger on the crossbench comes as the Australia Institute released new research which revealed the vast scale of Australia’s gas exports over the past five years.

“Over the last five years the Australian Government has allowed the export of enough gas to supply manufacturing in Australia for 60 years,” said Mark Ogge, Principal Advisor to The Australia Institute.

Adding insult to injury, Mr Ogge said that not only were the lopsided export deals forcing Australians to pay more for Australian gas, taxpayers were getting practically nothing in return.

“Some of the Japanese companies extracting the gas in Australia to export, get the gas for free, pay little – if any – tax and then Japan on sells the gas,” he said.

“Our gas reserves are a finite resource. Every year 83 per cent of the gas produced is exported. Once that gas is gone, we never get it back.”

Another little-known aspect to the gas debate is that the gas which is left for Australians is the most difficult and expensive to extract from underground or under the sea.

“All the affordable, accessible gas goes first. Successive Australian Governments have let most of our affordable, accessible gas sail overseas. That’s never coming back. And we are left with expensive, difficult to access, gas.”

“This is an energy security disaster for Australia. It is shocking the way our governments have mismanaged our gas resources.”

“They’ve sent enough of our gas reserves overseas. They’re draining our gas reserves. Enough is enough. We need to save the gas remaining for Australians in the future.”