However the nuclear dream is starting to look like a nightmare. Two years ago, the country suffered its own version of 'Three Mile Island' with its worst ever nuclear accident at Tokaimura.

Now, Chubu Electric Power's Hamaoka nuclear plant is having technical problems after the reactor's high pressure injection system designed to cool the reactor stopped operating last week after fire alarms went off. No radioactive leakage was reported.

Many commentators now believe that the woes besetting the Japanese nuclear industry will stimulate the search for energy sources outside Japan and Australia will be amongst the big winners.

Already Mitsui & Co has bought the rights to develop oil fields in Australia. Through its subsidiary, Wandoo Petroleum, the company will farm-in on eight exploration permits off the West Australian coast.

The planned $25 million exploration expenditure is not high by industry standards, however, it is the largest undertaken by a Japanese company in Australia.

Earlier this year, the company entered into an alliance with Sydney-based Novus Petroleum, which has interests in the producing Stratton gasfields onshore in Texas in the Gulf of Mexico basin, as well as deep exploration rights beneath the Magnet Withers field onshore south-west of Houston and Padre Island assets. Mitsui was looking to increase its North American exposure through Novus.

Chubu Electric has signed a letter of intent with the North West Shelf joint venturers for the supply of 600,000 tonnes of LNG a year from 2009. The partners expect two more letters from Japanese power utilities for train four production. So far deals have been struck with six customers covering 3.9 million tonnes of the planned 4.2 million tonnes annual output.

As well as nuclear power problems, continuing turmoil in the Middle East and Japan's first military involvement since WW2 has renewed 'Japan Inc' concerns that supply from the Middle East could become unstable very quickly.