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In brief
- Anthony Albanese will meet with Singapore’s leader on Friday to discuss energy supply.
- Singapore is Australia’s biggest two-way trade partner in south-east Asia, and a key refined petrol supplier.
Prime Minister Anthony Albanese has touched down in Singapore, Australia’s primary source of refined petrol. His mission is to engage in critical discussions aimed at securing additional fuel reserves amidst ongoing global instability.
Albanese departed from Australia on Thursday morning, setting the stage for a crucial bilateral meeting with Singapore’s leader, Lawrence Wong, scheduled for Friday.
This face-to-face conversation follows an announcement by U.S. President Donald Trump, who declared a temporary two-week ceasefire with Iran. The agreement hinges on Iran’s immediate reopening of the crucial Strait of Hormuz shipping route.
On Thursday, Albanese expressed his support for the ceasefire, stating, “We want to see it pursued.”
He further remarked, “While we hope for a lasting resolution to the conflict, it doesn’t necessarily guarantee the reopening of the Strait of Hormuz or a return to normal operations.”
“I’m looking forward to a constructive meeting with prime minister Lawrence Wong.”
Albanese’s objectives in Singapore
Albanese’s mission will involve convincing Singapore to prioritise Australia if the ceasefire fails, with trade in petrol and diesel to also feature heavily in discussions.
Australia relies on imports for an estimated 90 per cent of its refined petroleum products, and Singapore is the largest single supplier, accounting for more than half the nation’s intake.
In turn, Australia’s liquid natural gas resources are critical for Singapore.
Albanese said strengthening ties with Singapore would be crucial as the war in the Middle East and the closure of the strait disrupted global oil supplies.
“There’s been substantial damage in the Gulf and that will have consequences for a period of at least months ahead,” Albanese said.
Albanese will also visit Singapore’s Jurong Island, where the city-state has three oil refineries.
Production at the facilities has been limited as most of the oil processed there comes via the Strait of Hormuz.
Energy Minister Chris Bowen said supply was now guaranteed “several weeks” into May.
He said Australia obtained most of its fuel from Asia, but other purchases were coming from North America and Mexico after becoming available on short notice.
“Obviously, the closer it is to Australia, the better,” he told reporters on Thursday.
Singapore is Australia’s largest two-way trade partner in south-east Asia.
In March, Albanese and Wong signed a joint statement reaffirming Australia and Singapore’s commitments to continue trading in energy.
The statement said the countries would “support the flow of essential goods including petroleum oils, such as diesel, and liquefied natural gas”.
Albanese’s trip is also expected to reinforce broader economic and security ties, with both nations seeking to maintain stable supply chains in an increasingly volatile geopolitical environment.
— With additional reporting by Agence France-Presse news agency.
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