Australia is considering restricting exports of liquefied natural gas as it faces a potential supply crunch. The country is the biggest exporter of LNG to Japan.
Australia's competition watchdog recommended in August that the government look at curtailing gas exports.
The regulator warned supplies could fall about 10 percent short of domestic demand in 2023.
Japan gets roughly 37 percent of its LNG imports from Australia. There could be a major impact on Japan if Canberra decides to curb shipments.
Australia's rising coal prices are also causing concern. The northeastern state of Queensland hiked coal mining fees in July as prices rose. Analysts are concerned that imports of coal by Japanese trading houses and steelmakers will be affected.