Australia secures extra diesel from Brunei, South Korea to bolster war-hit supply

KUALA LUMPUR – Australia has secured an additional supply of more than 500,000 barrels of diesel from Brunei and South Korea, as the country looked to boost supplies hit by the Middle East war, Australian Prime Minister Anthony Albanese said on April 16.

Australia and Malaysia also agreed on April 16 to the continued “stable” flow of essential energies as global oil supplies remained choked in the vital Strait of Hormuz amid the Middle East crisis.

“I can announce that my government has secured an additional 100 million litres of diesel from two shipments. One from Brunei, where I was yesterday, and one from South Korea,” Mr Albanese told a press conference in Malaysia.

The purchase amounted to 570,000 barrels of additional diesel.

“This is the first of many expected shipments secured, under the government’s new strategic reserve powers,” said Mr Albanese, who is meeting his Malaysian counterpart Anwar Ibrahim to strengthen energy ties.

His comments came as a crucial refinery south-west of Melbourne was hit by a fire overnight, raising the spectre of further disruptions to the country’s fuel supplies.

Australia holds roughly 38 days’ worth of petrol in reserve, according to government figures, far below the 90-day minimum dictated by the International Energy Agency.

While the government has so far resisted moves to ration fuel, it has urged drivers to conserve petrol where they can and to favour public transport if possible.

Mr Albanese is on a two-country tour in South-east Asia this week, seeking to boost the flow of essential crude oil, fuels and fertiliser to Australia, and push LNG supply to Australia’s trading partners in return.

Malaysia is Australia’s largest provider of crude and its third-largest source of refined fuel.

It supplies some 14 per cent of Australia’s diesel, 10 per cent of its petrol and 11 per cent of its jet fuel.

Malaysia in turn heavily relies on LNG imports from Australia, with Canberra saying it supplied around 95 per cent of Malaysia’s natural gas needs.

Like most nations in Asia and the South Pacific, Australia is heavily reliant on oil shipped through the Strait of Hormuz, which at one point carried one-fifth of the world’s oil and gas.

Shipping traffic through the vital waterway has essentially ceased since the United States and Israel launched strikes against Iran on Feb 28.

“Malaysia and Australia share a strong interdependence in energy resources,” Datuk Seri Anwar said after meeting Mr Albanese.

“We commit to promote open and stable trade flows between our two countries, including for essential energy supplies,” the two leaders added in a joint statement. AFP