Singapore has pledged not to cut fuel supplies to Australia, with Prime Minister Lawrence Wong telling Anthony Albanese that exports would continue despite the international crisis. The assurance came during the Australian prime minister's brief visit to Singapore, which culminated in a new bilateral agreement on energy security.
The joint statement commits both countries to 'make maximum efforts to meet each other's energy security needs' in refined fuels and liquefied natural gas (LNG). Additionally, a legally binding addendum will be added to their free trade agreement covering essential supplies like energy, amid the 'acute energy crisis' caused by the war in the Middle East.
Singapore is Australia's largest supplier of petrol, accounting for more than a quarter of total refined fuel imports, including 55% of petrol, 22% of jet fuel and 15% of diesel, worth over $10bn. Australia supplies 32% of Singapore's LNG, valued at about $5bn. Wong stated that Singapore did not plan to restrict exports, noting it had not done so even during the darkest days of Covid.
The agreement did not secure immediate additional fuel supplies for Australia, a point seized upon by the Coalition opposition. However, the government said the visit would help secure future supplies. Albanese downplayed prospects of a new tax on gas exports, which has been advocated by progressives and some opposition figures.
Both leaders emphasised the importance of trusted supply lines for an uncertain future. Wong said a new Singaporean government body centralising gas imports would look to Australia for more commercial gas, potentially long-term. The joint statement also reaffirmed commitments to support the flow of essential goods and intensify cooperation on timely movement of supplies.
