Fuel shipments: Penny Wong in China as part of Asian tour to secure more petrol for Australia
Foreign Minister Penny Wong says countries need to work together ‘to keep fuel and goods flowing’ during a visit to China.
The Chinese government has agreed to co-operate with Australian businesses on jet fuel shipments, Australian Foreign Minister Penny Wong says, suggesting China could loosen curbs on exports imposed amid supply disruption from the Iran war.
“We believe this is an important step, but it is the first step,” Senator Wong told reporters in Beijing, adding that the aim of her trip was to press for Chinese co-operation “in particular for the provision of liquid fuels”.
Senator Wong is in China as part of a three-country tour that also includes Japan and South Korea, with Australia seeking to keep ties with China on a steadier footing while co-ordinating with regional powers on energy security.
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By continuing you agree to our Terms and Privacy Policy.Australia, which imports most of its fuel, has faced localised shortages since the Middle East conflict that began in February.
China has clamped down on fuel exports since March to protect domestic supply after the closure of the Strait of Hormuz disrupted crude and fuel flows.
China is a major source of fuel in Asia and supplied a third of Australia’s jet fuel last year.
In a meeting with her Chinese counterpart Wang Yi, Senator Wong said she “made the point that the imports China supplies to Australia, including jet fuel, support the Australian resources sector, which in turn helps to maintain the flow of commodities” that are crucial to the bilateral trading ties.
“Our energy security is shared,” Senator Wong said.
“Energy supplies to us impact upon our capacity to provide other energy and other commodities to the region.”
China has approved 500,000 metric tons of fuel exports for May to regions other than Hong Kong, representing a near doubling of shipments forecast for April, trading sources said, but levels remain less than half of last year’s corresponding averages.
“It is more important than ever for countries of the region to work together to co-ordinate our responses and to keep fuel and goods flowing,” the Australian foreign minister said on Wednesday.
