More Australian LNG to Singapore flagged as Albanese looks to strengthen oil supply chain

Increased exports of Australian LNG to Singapore are in prospect, after Prime Minister Anthony Albanese met his Singaporean counterpart Lawrence Wong in Friday talks to shore up Australia’s oil supply chain.

During a joint news conference Prime Minister Wong said Singapore would look to access more Australian LNG on a commercial basis “and hopefully more long-term gas as well”.

Albanese said if Singapore required more LNG, over a period “additional fields are going to come online”.

Asked about the tax treatment for new exports, Albanese dodged answering the question directly. But he has previously indicated – in the face of pressure from the left and right of politics for a super profits tax on increased gas exports – that his priority is to maintain Australia’s reputation as a reliable supplier. At the news conference he again stressed Australia’s reliability.

During a flying visit to Singapore focused on energy security, Albanese and Wong pledged to keep trade in energy products flowing between the two countries – LNG from Australia and refined products from Singapore.

Wong said: “Essential goods will continue to move between Australia and Singapore. That includes liquefied natural gas, or LNG, which Australia supplies to Singapore, as well as refined petroleum products like diesel which Singapore supplies to Australia.”

Singapore supplies more than a quarter of Australia’s refined fuel imports, while Australia provides about one third of Singapore’s LNG.

When asked whether Australia would be given priority if Singapore had to restrict exports, Wong said: “We do not plan to restrict. We didn’t have to do so even in the darkest days of COVID. And we will not do so during this energy crisis. It’s hypothetical. It won’t happen.”

The two countries are negotiating a legally binding Protocol to the Singapore-Australia Free Trade Agreement on Economic Resilience and Essential Supplies, and are arranging to step up coordination on energy issues.

In a joint statement the leaders said:

we recognised the importance of the role of our countries in each other’s energy security – Singapore is one of Australia’s top suppliers of refined petroleum products, and Australia is one of Singapore’s top suppliers of liquefied natural gas.

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.

we reaffirmed our commitment to support the flow of essential goods including petroleum oils, such as diesel, and LNG and agreed to intensify cooperation to facilitate the timely movement of goods and essential supplies through enhanced coordination, efficient border and port processes, transparency, and early consultation.