Australia, South Korea to cooperate on energy security
Sydney (1 May)
South Korean and Australian officials will collaborate to maintain the flow of liquid fuels – including refined oils and liquefied natural gas – between the two countries, the Australian Government said late on 30 April.
The two governments called on other countries to help keep global energy supply chains open in a joint statement. They will also notify and consult each other on potential liquid fuel supply disruptions, according to the statement.
South Korean refiners are the largest suppliers of Australian diesel, the second largest suppliers of petrol, and the third largest suppliers of jet fuel, Foreign Affairs Minister Penny Wong said at a press conference in Seoul.
Australian producers, in turn, are the largest suppliers of South Korean liquefied natural gas, Wong added.
South Korea refiners depend on the Strait of Hormuz – which Iran closed on 28 February because of US-Israeli attacks – for around 70% of their crude oil feedstock, according to Wong.
Australia’s statement with South Korea comes weeks after Prime Minister Anthony Albanese pledged to work with Malaysian and Bruneian leaders on supply issues related to essential goods, including refined oils, fertilisers, and gas.
Malaysian state-owned refiner Petronas plans to prioritise fuel exports to Australia, after domestic needs are met, Malaysian Prime Minister Anwar Ibrahim said at a press conference announcing the cooperation pledge.
On 17 April, Wong and Singaporean Foreign Affairs Minister Vivian Balakrishnan also negotiated a legally binding protocol on essential supplies. Singapore and Australia will endeavour not to adopt export restrictions on essential supplies between each other, the Ministers said.
Australia has 44 days’ worth of petrol reserves, 30 days’ worth of jet fuel reserves, and 33 days’ worth of diesel reserves on 21 April, according to the Department of Climate Change, Energy, the Environment, and Water.
There were also 58 ships loaded with fuel on the way to Australia on 26 April, according to Energy Minister Chris Bowen.
Australia remains at Stage 2 of its National Fuel Strategy, indicating effective fuel supply chains with localised disruptions. The Australian Federal Government is tasked with adjusting fuel standards, engaging with foreign governments, and underwriting fuel purchases at Stage 2.
By Avinash Govind