Australian PM Meets With Singapore Leader to Secure Fuel Supply

Australia and Singapore have pledged to keep fuel and essential goods flowing as global markets come under pressure from supply chain instability in the wake of the Iran War.

Meeting in Singapore on April 10, Prime Minister Anthony Albanese and his Singaporean counterpart Lawrence Wong reviewed the Australia-Singapore Comprehensive Strategic Partnership 2.0 (CSP 2.0).

The CSP 2.0 is a formal, decade-long framework for collaboration between the two nations, focusing on defence, trade, supply, energy, technology, and education.

Albanese and Wong issued a joint statement in which they both noted the “significant economic impacts of the current Middle East crisis” as they spoke of the value of Singapore supplying fuel while Australia provided liquid natural gas (LNG).

“We reaffirmed our support for the current ceasefire and encouraged negotiations to bring an end to the conflict,” the leaders said.

“Singapore is one of Australia’s top suppliers of refined petroleum products, and Australia is one of Singapore’s top suppliers of liquefied natural gas.”

The stakes for Australia are particularly high.

Estimates from NRMA indicate that Singapore refines 54.7 percent of Australia’s petrol, 15.4 percent of its diesel, as well as 22 percent of its jet fuel.

To safeguard this lifeline, the two nations agreed to a legally binding protocol to solidify the Singapore-Australia Free Trade Agreement (SAFTA) regarding economic resilience and essential supplies.

To support this cooperation, the nations welcomed the establishment of the Australia–Singapore Economic Resilience Dialogue. Co-chaired by senior officials, the forum is designed to facilitate trade in essential supplies and address emerging logistics challenges.

While the Australian and Singaporean leaders meet annually, fuel supply has dominated this year’s prime ministerial visit.

During his visit, Albanese paid a visit to Jurong Island, a 32-kilometre artificial island off the coast of Singapore that houses the refineries that supply Australia.

Prime Minister Wong dismissed concerns that fuel exports might be restricted if regional instability worsens.

“We do not plan to restrict exports. We didn’t have to do so even in the darkest days of COVID and we will not do so during this energy crisis,” he said.

“I am confident that Australia and Singapore will not just get through the crisis, but we will emerge stronger and more resilient.”