Anthony Albanese is heading to oil refining heavyweights Brunei and Malaysia as part of a Southeast Asian diplomatic blitz aimed at shoring up Australia’s fuel and fertiliser supplies.
Australia imports around 90 per cent of its fuel needs, leaving it at the mercy of foreign refineries weathering the global oil crisis.
Australia farmers also source some 60 per cent of their urea – the most widely used nitrogen fertiliser – from the Middle East.
Those imports have been cut by Iran’s effective blockade of the Strait of Hormuz.
Brunei, a small oil-rich autocracy, supplies nine per cent of Australia’s diesel imports and 11 per cent of urea.
The Prime Minister will seek guarantees from Sultan Haji Hassanal Bolkiah that his country will continue shipping fuel and fertiliser when they meet mid-next week.
Prime Minister Anthony Albanese is visiting Brunei and Malaysia to shore up Australia’s foreign fuel supplies. Picture: NewsWire / Tertius Pickard
Mr Albanese will also seek guarantees from Malaysia, which is Australia’s third-largest source of refined fuel and accounts for 10 per cent of urea imports.
“Engaging with critical regional partners such as Brunei Darussalam and Malaysia will help
ensure Australia’s energy supply remains secure during times of uncertainty,” he said on Sunday.
“We are taking every step to reinforce relationships and engage with key partners to keep
our fuel supply flowing.
“My government is continuing to take every practical action to shield Australians from the
impact of the war in the Middle East.”
Malaysia’s embassy last month warned the country would prioritise its own fuel needs before looking at foreign demand, sparking concerns it could curb exports.
Those concerns were compounded days later by news several scheduled shipments were cancelled.
Going into his visits, Mr Albanese has food and agriculture exports to lean on in Brunei and gas exports for Malaysia.
Australia is responsible for 95 per cent of Malaysia’s imported natural gas.
The trip comes after Mr Albanese secured a pledge from Singapore that it would continue fuel shipments.
However, Singaporean counterpart Lawrence Wong caveated that pledge with “as long as upstream supplies continue”.