SINGAPORE: Australia’s Prime Minister Anthony Albanese is flying to Singapore from April 9 to 11 for meetings with the city-state’s Prime Minister, Lawrence Wong. The two leaders will be discussing the trade of essential fuel supplies, including diesel and liquefied natural gas.
The war in the Middle East, which began on February 28 when the United States and Israel started bombing Iran, has resulted in the effective closure of the Strait of Hormuz, a chokepoint for 20% of the world’s fuel supply. The conflict has given rise to a steep increase in oil prices that has deeply affected countries in the Asia Pacific region, which are finding themselves scrambling to ensure that their energy supply does not run out.
On March 23, Australia inked an agreement with Singapore for fuel supply and has since secured assurances from Japan and Korea as well.
This week, Mr Albanese spoke with China’s Premier Li Qiang as part of his efforts to grow Australia’s fuel supply.
“Australia is facing a more uncertain world, with energy shocks and supply disruptions affecting prices and livelihoods at home. We do not need to wait for this global crisis to be over; we have to build resilience into the system,” Mr Albanese said, although he underlined that Australia’s current position is “secure.”
“However, engaging with international partners is an important part of keeping our fuel supply flowing. We are taking every practical action, including working closely with our international partners, to shield our nation from the worst of this global uncertainty,” he added.
Nine-tenths of Australia’s liquid fuel is imported, with most of its petrol, diesel, and jet fuel coming from Asia. Singapore is its biggest supplier of unleaded petrol, and around half of the 80 fuel shipments that come to Australia monthly come from the city-state.
”About 55% of our petrol is from Singapore. It’s our number one supplier of petrol, our number two supplier of diesel and jet fuel. So that’s a pretty formidable supply of fuel coming from Singapore,” Australian Institute of Petroleum CEO Malcolm Roberts was quoted as saying.
Running dry
Mr Albanese’s campaign to shore up Australia’s fuel supply comes even as its energy emergency appears to deepen. An April 7 report in 9news said that in New South Wales that day, 34 stations had run dry and 125 did not have at least one type of fuel.
Although fuel has yet to be rationed in the state, NSW Energy Minister Penny Sharpe said that its government is “planning for the worst case scenario, and if we have to take action, we will. We’re planning for if the situation deteriorates.” /TISG
Read also: Australia secures assurance from Singapore, Japan, Korea for fuel supply amid crisis
