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SINGAPORE: Singapore and Australia will step up efforts to ensure the steady trade of key goods, including diesel and liquefied natural gas (LNG), and strengthen their supply chain resilience, both countries' leaders said on Monday (Mar 23).
In a joint statement, Prime Minister Lawrence Wong and his Australian counterpart Anthony Albanese expressed "deep concern" over the situation in the Middle East and its consequences for their region, including the impact on energy supply chains and prices.
The US-Israeli conflict with Iran has damaged energy infrastructure in Gulf states like Qatar, a key exporter of LNG, and effectively shut the Strait of Hormuz - where about a fifth of global oil and LNG normally transits.
The disruptions have led to concerns about their impact on global energy supplies.
Mr Wong and Mr Albanese said they were committed to working together to strengthen energy supply chain resilience.
This includes efforts to deepen regional cooperation, accelerate renewable energy transition, address unjustified import and export restrictions and maintain open trade flows, said the two prime ministers after a phone call on Monday.
“In this context, we reaffirm our commitment to strengthen energy security, to support the flow of essential goods, including petroleum oils, such as diesel, and LNG between our two countries,” they said.
Australia is one of the world's top LNG producers, alongside Qatar, the US and Russia.
LNG is traded globally, and supply disruptions can quickly ripple across regions as buyers compete for limited cargoes.
This matters for Singapore, where 95 per cent of its electricity is generated using imported natural gas, comprising LNG and pipeline gas from neighbouring countries.
Mr Wong and Mr Albanese said that they would notify and consult each other on any disruptions that would affect energy trade.
"Australia and Singapore will accelerate negotiations on an Arrangement on trade in essential supplies, and will explore options for a future legally-binding commitment involving bilateral arrangements such as consultation and early notification in case of potential disruptions," said Mr Wong and Mr Albanese.
This is consistent with Australia and Singapore's Comprehensive Strategic Partnership 2.0 joint declaration in October 2025, said the two leaders.
Mr Wong said at the time that the partnership's upgrade would boost economic connectivity between the two sides.
The prime ministers noted that their countries share a long-standing and deep relationship “grounded in strategic trust, open markets and rules-based trade”.
Reaffirming the shared principles that underpin the prosperity and security of the people and the region is "essential" at this time, said Mr Wong and Mr Albanese.
“We call on other trading partners to join us in ensuring global energy supply chains are kept open, for the benefit of the security and prosperity of our peoples.”
