Australia inks fresh fuel supply deal with Singapore
Australia will continue to receive the maximum amount of fuel it can from Singapore following global volatility in oil markets.
Prime Minister Anthony Albanese and his Singaporean counterpart Lawrence Wong signed a new agreement to continue trading large quantities of fuel and gas between the two countries on Friday, following the Australian leader’s visit to the Asian city-state.
The agreement stated that the countries “will make maximum efforts to meet each other’s energy security needs” at a time when fuel prices are rapidly increasing and many fuel stations are disrupted due to conflicts in the Middle East.
More than a quarter of all fuel imported into Australia comes from Singapore, while it provides around a third of the Australian city-state’s LNG supply.
Mr Albanese said the agreement would ensure energy security was protected.
“It is vital that we coordinate our response to the global fuel crisis and cooperate to make both our economies more resilient,” he told reporters at a joint media conference.
“The conflicts in the Middle East are far from our region, but every nation in our region is affected by them.
“The best way to deal with this global crisis is actually to work together as partners and neighbors.”
Singapore’s prime minister has ruled out fuel exports being restricted if supply problems worsen in coming months.
“We don’t plan to restrict exports. We didn’t have to do this even in the darkest days of Covid-19, and we won’t do so during this energy crisis,” Mr Wong said.
“I am confident that Australia and Singapore will not only emerge from the crisis, but also emerge stronger and more resilient.”
Earlier in the day, Mr Albanese toured an oil refinery and liquefied natural gas terminal on Jurong Island off Singapore’s southwest coast, wearing a hard hat and different industrial safety overalls on each visit.
As he was taken around the facilities, he was surrounded by huge tanks and towers.
During a visit, he met Leon Wei Hung, managing director of Singapore LNG, while gas was being extracted from a ship in the harbour.
The man-made island is home to a workforce of thousands and is the heart of Singapore’s petrochemical industry, including oil and gas exports.
However, production remained limited because most of the oil processed in the facilities came from the Strait of Hormuz.
Both leaders called for the reopening of the strait, through which one fifth of the world’s oil supply passes.
Singapore is Australia’s largest two-way trading partner in Southeast Asia.
The bilateral meeting came after Mr Albanese and Mr Wong signed a joint statement confirming Australia and Singapore’s commitment to continue energy trade.
