Japan wants Santos’ Barossa gas project excluded from emissions policy

afr.com:

Japan is understood to have formally requested that the Albanese government exclude Santos’ $5.8 billion Barossa gas project in the Timor Sea from Labor’s new emissions policy, fuelled by concerns about the risks it poses to supplies of gas critical to national security.

The request is reportedly part of an urgent query the Japanese government has lodged with Canberra over the beefed-up safeguard mechanism policy, which the government fears will exert “significant influence” over Japan’s involvement in Australian LNG.

Japan’s Economy Minister Yasutoshi Nishimura says the safeguard mechanism will influence Japan’s involvement in Australian LNG. AP

Japan has requested the Australian government give an “immediate and sincere” response to three pages of queries about the safeguard mechanism that it lodged three weeks ago, according to a report by S&P Global Commodities Insights.

But the Australian government has made it clear exemptions from the safeguard rules are not on the agenda.

Under the safeguard mechanism rules, which come into effect on July 1, new gas fields developed to supply existing LNG plants have to be net zero emissions from the outset.

That has puts doubts around Barossa, which is now required to achieve much stricter carbon standards than when it was approved for development.

“The government’s safeguard mechanism reforms provide the regulatory framework for Australia’s largest industrial emitters to contribute not just to Australia’s legislated emissions reduction targets, but their own corporate commitments,” a spokeswoman for Energy and Climate Change Minister Chris Bowen said, pointing to broad support for the policy from business.

“The government engaged extensively in developing the policy and has