Australia secures assurance from Singapore, Japan, Korea for fuel supply amid crisis

CANBERRA: Similar to many other countries, Australia found itself unprepared for the energy emergency that resulted amid the war in the Middle East, which started when the United States and Israel began bombing Iran on Feb 28. In retaliation, Iran has not only targeted the bases of US allies in the region but also effectively closed down the Strait of Hormuz, through which 20% of the world’s oil and 25% of global liquefied natural gas (LNG) passes.

This has put many nations, including Australia, in a bind. Around 90% of the country’s refined fuel comes from refineries in Asia. Should these countries, as their fuel supplies dip, stop exporting fuel to preserve it for domestic use, Australia’s supply would be left at risk, with critical effects on its economy and people’s daily lives.

As a result, its government has been pursuing guarantees from Singapore, South Korea, Malaysia, and Japan, among other Asian countries, to ensure a continuous fuel supply. 

Singapore

On March 23, the Prime Ministers of Singapore and Australia, Lawrence Wong and Anthony Albanese, issued a joint statement expressing “deep concern over the situation in the Middle East and its consequences for our region,” which includes the effects on energy supply chains and prices. The two countries affirmed their commitment to work together towards energy supply chain resilience.

Around 55% of Australia’s petrol and 15% of its diesel comes from Singapore. Malaysia, meanwhile, supplies around 13%. In turn, Australia is an important source of LNG for Singapore. 

The Nightly, an Australian news website, reported on April 1 that Mr Albanese is expected to travel to Singapore, and possibly to Malaysia as well, after the Easter holidays to shore up fuel supply agreements.

The Prime Minister has also been quoted as saying, “Our first priority is supply. Supply depends upon those relationships being adhered to.” 

The country’s energy minister, Chris Bowen, announced that Australia is now getting refined fuel from other countries, including Mexico and the US.

Last week, Singapore’s Minister-in-charge of Energy and Science and Technology, Tan See Leng, was in Canberra for meetings with several Australian ministers, including sit-downs with Mr Bowen, Minister for Resources, Madeleine King, and Minister for Foreign Affairs Penny Wong.

Japan and South Korea

On April 5, Australia’s Assistant Foreign Minister said that in meetings over the past week, the government had received reassurances of a “normal supply” of fuel from top officials from Japan and South Korea. 

“I met last week with the Japanese minister and requested that supply continue, and they’ve given us an assurance,” he told SkyNews.

According to a recent Nikkei Asia report, Japan’s Prime Minister Sanae Takaichi intends to go to Australia in the weeks to come for discussions on rare earths and endeavours to resume regular operations in the Strait of Hormuz. /TISG 

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