Singapore will continue to supply Australia with refined fuels as long as oil supply remains steady, as Anthony Albanese left the door open to more domestic gas fields, should the Asian city-state require more supply.
The efforts between both countries to secure the reciprocal flow of fuel and LNG was a key priority for both the Prime Minister and his Singaporean counterpart Lawrence Wong during the pair’s annual leaders’ meeting on Friday.
Singapore provides over half of the nation’s petrol, as well as 22 per cent of its jet fuel and 15 per cent of its diesel.
In return, Australia is Singapore’s second-largest supplier of liquefied natural gas, providing it with 32 per cent of its supply.
Fronting a joint press conference at his official residence, Istana, Mr Wong said: “I appreciate Prime Minister Albanese’s assurance that Australia will continue supplying LNG to Singapore, because this is vital for us – natural gas is our main source for power generation.”
“Likewise, I have assured Prime Minister Albanese that Singapore will continue supplying refined fuels to Australia as a global refining hub,” he said.
Singapore would continue to provide Australia with fuel as long as “upstream supplies” continued, he said, pointing to the earliest stages of the supply chain.
In this case, those supplies predominantly come from countries abutting the Strait of Hormuz, including Saudi Arabia, the United Arab Emirates, and Iraq.
Later, Mr Wong said Singapore would not move to restrict exports to Australia, saying: “We didn’t have to do so even in the darkest days of (the Covid-19 pandemic), and we will not do so during this energy crisis.”
And when it came to Singapore’s supply of LNG, Mr Albanese confirmed “additional fields” would come online, should the Asian ally require more Australian gas.
“We will continue to provide support for Singapore, which is important for your economy, but also produces benefit for Australia,” he said.
Both the leaders also expressed fond gratitude for the friendship between their respective countries.
Mr Wong, along with every member of his staff, wore a custom silver pin bearing the national flags of both Australia and Singapore.
“Singapore and Australia have tackled challenges together before … I am confident that Australia and Singapore will not just get through the crisis, but we will emerge stronger and more resilient,” Mr Wong said.
Working together was the “best way” to deal with the Middle East crisis, Mr Albanese later added, before saying: “And I look forward to continuing to engage so with the Prime Minister, we had a very wide ranging discussion today, and that’s what friends can do, because you come to the relationship with that position of trust and mutual interest.”
Singapore is Australia’s largest two-way trade partner and investor in Southeast Asia, and one of the nation’s closest strategic and economic partners.
In 2024-25, Singapore was Australia’s sixth largest trading partner overall with total trade worth $47.7 billion.
In a joint statement, the two leaders made a number of agreements, including working toward a legally binding protocol on economic resilience and essential supplies, covering energy and other critical sectors.
“This is not just about managing today’s crisis, it’s about building trusted supply lines for a more uncertain future,” Mr Wong said.
“Our officials have already had extensive discussions on the protocol, and we have agreed to accelerate the negotiations, and we aim to conclude the agreement soon.
He continued: “Our teams will stay in close contact to manage and respond quickly to any external disruptions that may affect us or impact our supply chains.
“We will convene our first energy ministerial dialogue soon and establish an economic resilience dialogue, and these platforms will enable us to deepen co-operation as the situation evolves and preserve the flow of essential supplies between our two countries.”
They also discussed how the deal could be replicated with “like-minded countries”.
Asked about the source of fuel refined in Singapore, Mr Wong said companies there were mandated to abide by international sanctions regimes, such as sanctions on Russia following its illegal invasion of Ukraine.
“But, subject to that, oil is fungible,” he said.
“As long as more oil enters the global energy market, it is good for the world and our companies based here in Singapore are deeply connected to the different flows of energy supplies around the world.
“That’s something we’ve built up over a considerable amount of time as an energy hub, as a refining hub, as an oil trading hub.”
Mr Wong said Singapore would also like to “get more food from Australia”.
Mr Albanese said strengthening trade agreements in the region would “help our farmers back home”.
Joint statement from PMs
In a joint statement, the Prime Ministers said they recognised the “importance of the role of our countries in each other’s energy security”.
“Building on our Joint Statement on Energy Security on March 23, we stated our determination to make maximum efforts to meet each other’s energy security needs in the context of the acute energy crisis currently affecting global markets,” the statement reads.
We reaffirmed our commitment to support the flow of essential goods including petroleum oils, such as diesel, and LNG and agreed to intensify co-operation to facilitate the timely movement of goods and essential supplies through enhanced co-ordination, efficient border and port processes, transparency, and early consultation.”
The statement also noted ministers in Singapore and Canberra had been directed to conclude a “legally binding Protocol to the Singapore-Australia Free Trade Agreement (SAFTA) on Economic Resilience and Essential Supplies consistent with this Joint Statement”.
The Singapore-Australia Free Trade Agreement was first signed in 2003, and has been updated repeatedly, most recently in 2020.
The statement also noted the Australia-Singapore Comprehensive Strategic Partnership 2.0 (CSP 2.0), an enhanced version of which, the leaders said, would set out the “ambitious next phase of co-operation” between the two countries.
The visit comes at a precarious time for Asia and its large economies, including Singapore, which are reliant on the Strait of Hormuz.
The sea thoroughfare was only briefly opened earlier this week before a ceasefire struck between Iran, the United States, and Israel broke down after Israel attacked Lebanon with more than 100 air strikes only hours after the deal.
Israel contends its northern neighbour is not subject to the ceasefire.
In their joint statement, the two leaders reaffirmed support for the current ceasefire and encouraged negotiations in the Middle East.
“We reaffirmed our commitment to working together, particularly during crises, to support a resilient, rules-based multilateral trading system that underpins stability during periods of global disruption,” it stated.
