Why can’t climate ideologues see the benefits of gas exports?

Workers at the Gorgon liquefied natural gas and carbon capture and storage facility, Barrow Island, Australia.

Australia’s gas sector is again under fire from ideologically driven critics. Commentators from groups such as the Australia Institute and Jubilee Australia argue that our export of liquefied natural gas primarily serves foreign interests rather than national needs.

Their logic? That Japanese firms redirect some of the Australian gas they buy, and that this somehow undermines our sovereignty or economic benefit.

This analysis is misguided, driven by a simplistic ideology in which any fuel that emits carbon dioxide is bad, however much it may help us to eliminate other sources of the greenhouse gas. If allowed to shape policy, such thinking would compromise Australia’s economic productivity, erode national resilience, and diminish our strategic influence across the Indo-Pacific.

Let’s be clear: Australia’s gas exports are a strategic lever. Japan and South Korea have invested more than $US20bn in Australian LNG infrastructure since 2008.

Whether gas is consumed in those countries or traded into other Asian markets, those exports underpin a reliable Indo-Pacific energy market and reinforce Australia’s position as a low-risk, high-integrity supplier.

That’s not exploitation; it’s sovereignty-enhancing economic diplomacy.

In a world of weaponised trade and strategic decoupling, Australia’s reliability matters. Sovereign risk is real. LNG buyers and investors are watching Australia closely on this, wary of signs that swings in our government policy can suddenly damage or destroy what a foreign investor here pays for. Policy instability, amplified by fringe ideological critiques, could lead to capital flowing elsewhere.

The US has already overtaken Australia in LNG capacity, and Qatar’s North Field expansion means its LNG output will soon exceed Australia’s. In this context, dismantling our competitive ­position would be a strategic act of self-harm.

Critics also overlook a fundamental truth: you can’t run an advanced economy, nor transition to net zero, on ideology alone. Natural gas will remain a crucial part of Australia’s and the world’s energy mix well into the 2050s.

The Australian Energy Market Operator’s GenCost modelling anticipates that gas will account for 8 to 10 per cent of power generation even in a net-zero future. For heavy industry, manufacturing, and non-substitutable processes, gas is vital.

What happens to Australia’s national security and human security if we can’t keep the lights on during extreme weather or if our manufacturing shuts down due to unreliable energy? What if the cost of power makes domestic food and medicine production unviable?

Energy policy is about more than emissions. It’s also about economic productivity, social cohesion and national resilience.

Equally misleading is the claim that Australia has “allowed multinational gas companies to take us for a ride by giving them our resources tax-free”. While reform of the petroleum resource rent tax is overdue, the sector did pay $17.1bn in taxes and royalties in the 2023–24 fiscal year. Gas exports support tens of thousands of jobs, fund infrastructure and make a significant contribution to the ­national budget.

Gas is a partner, not competitor, for renewables, helping to ­create a diversified, resilient energy system. Walking away from LNG to appease narrow ideological narratives would not reduce emissions globally; it would merely hand market share to regimes with lower environmental and governance standards.

Russia remains an important gas supplier to Japan, for example, while Taiwan has increased its ­imports of Russian coal for electricity generation.

Australia must remain pragmatic. Our gas sector supports our economy, strengthens our alliances and enhances our sovereignty. If we abandon it in favour of ­political theatre, we don’t just lose market share; we lose resilience, credibility and control over our future.

John Coyne is director of national security programs at the Australian Strategic Policy Institute.