Japan's Prime Minister Shinzo Abe has laid a wrath at the Darwin Cenotaph overlooking the city's harbour, 77 years after Japan's military bombed it during World War II.

Mr Abe is paying a historic visit to Darwin and talking with Prime Minister Scott Morrison in a powerful sign of Japan's warm relations with Australia.

Mr Morrison laid the wreath alongside Mr Abe, who is the first Japanese leader to visit the Northern Territory capital since the devastating 1942 bombing.

Japan's Prime Minister Shinzo Abe (pictured, left) has laid a wrath at the Darwin Cenotaph overlooking the city's harbour 77 years after Japan's military bombed it

Mr Morrison laid the wreath alongside Mr Abe, who is the first Japanese leader to visit the city since his nation's army bombed the city during World War II

Mr Abe is paying a historic visit to Darwin and talking with Prime Minister Scott Morrison in a powerful sign of Japan's warm relations with Australia

The pair also inspected a memorial of the 80-crew Japanese submarine I-124, which was sunk off Darwin in January 1942 and remains there.

The visit would also 'recognise the importance of the reconciliation that followed between our countries', Mr Morrison said.

'Prime Minister Abe's visit is deeply symbolic and significant and it will build on our two countries' strong and enduring friendship as well as our economic, security, community and historical ties,' he said.

Darwin is a key part of Japan's energy security through the recently completed $55 billion LNG project operated by Japan's Inpex.

The Ichthys LNG venture is the biggest foreign investment made by Japan as it has moved away from nuclear power since the Fukushima disaster.

The pair also inspected a memorial of the 80-crew Japanese submarine I-124, which was sunk off Darwin in January 1942 and remains there

The visit would also 'recognise the importance of the reconciliation that followed between our countries', Mr Morrison said

The first gas shipment left Darwin for Japan last month.

On Thursday, Inpex president Takayuki Ueda announced a $24 million package over 40 years, including benefits for indigenous education and the elderly.

He said the support of locals including the Larrakia people made Darwin a friendly location to ship gas in a stable, democratic country.

The Bombing of Darwin (pictured) on February 19, 1942, was the largest single attack ever mounted by a foreign power on Australia