Perth Now: Fukushima fallout drives Japan’s $66 billion demand for WA gas

For years the headlines have solely been about China and our iron ore, but soon the rhetoric will be focusing on Japan and liquefied natural gas.

The value of LNG exports from Australia is predicted to increase as much as 360 per cent to $66 billion within a few years. WA accounts for nearly 90 per cent of the country’s LNG capacity.

Curtin University economist John Edwards, who was the principal economic adviser to former prime minister Paul Keating, said it was possible that by 2017 Japan could once again be Australia’s single biggest customer for exports.

It had been No. 1 for decades before being surpassed by China in 2009.

“Although it began with the boom in iron ore prices in 2003, the boom in Australian mining over the next decade will have quite a different shape,” Prof Edwards, who recently authored the book Beyond the Boom, said.

“The first decade was about prices, iron and China.

“The second decade will be about volumes, gas and Japan.

“As our LNG exports increase, and they’ll increase hugely, it’s likely Japan will be a more important customer for Australia than it is today.” Prof Edwards said the increased value of LNG exports would be more than the sum of the increased value of metallurgical coal, thermal coal and iron ore put together. MORE