Australia commits to energy cooperation with Malaysia
- Sydney (16 April)
Australian Prime Minister Anthony Albanese and Malaysian Prime Minister Anwar Ibrahim have agreed to promote stable energy trade flows between their countries, the two leaders said in a joint statement on 16 April.
“We will exchange views on energy trade-related matters on a ‘no surprises’ basis, and deepen practical cooperation on energy security,” they said. Malaysian state-owned refiner Petronas also plans to prioritise fuel exports to Australia, after domestic needs are met, Ibrahim said at a press conference.
Australia and Malaysia share deep concern over the ongoing conflict in the Middle East, its escalation, and its impact on energy supply chains, prices, and flows, Albanese and Ibrahim said.
Iran partially blocked the Strait of Hormuz – a narrow maritime passage – after Israel and the US attacked it on 28 February, curbing crude oil flows. Tankers carrying about 41,500 tonnes of cargo crossed the Strait of Hormuz each day in March, down from 2.6 million tonnes each day a year earlier, estimates from the IMF’s Portwatch monitor show.
The US Navy has also blockaded Iranian ports since 14 April, further limiting the flow of oil.
About 40% of Malaysia’s crude oil imports pass through the Strait of Hormuz. One Malaysian-owned vessel crossed the Strait on 7 April, following conversations between Iranian and Malaysian leaders in late March, but others remain stranded in the Persian Gulf.
Malaysian oil refiners supplied 13% of Australia’s refined petroleum imports in 2024, data from the Observatory of Economic Complexity (OEC) show. Australia, meanwhile, accounted for 83% of Malaysia’s liquified natural gas imports.
Malaysia was the third largest source of Australian refined petroleum in 2024, behind South Korea and Singapore.
Albanese’s joint statement with Ibrahim comes a day after he pledged to cooperate with the Sultan of Brunei, Haji Hassanal Bolkiah, on energy and fertiliser supply issues. Australia and Singapore also agreed to set up an Energy Ministerial Dialogue and finalise a legally binding protocol related to economic resilience and essential supplies on 10 April.
Singapore, Malaysia, and Brunei collectively account for roughly 40% of Australia’s refined petroleum imports, OEC data show.
Australia had 38 days of gasoline reserves, 28 days of jet fuel reserves, and 31 days of diesel reserves on 7 April, data from the Department of Climate Change, Energy, the Environment, and Water show.
Australia’s Federal Government also partnered with Australian producer Viva Energy to buy 100 million litres of fuel from Brunei and Singapore on 16 April. Government lender Export Finance Australia will underwrite the purchases.
By Avinash Govind