SYDNEY: Australia has secured three shipments of jet fuel from China totalling 600,000 barrels, Prime Minister Anthony Albanese said Tuesday, doubling the national supply.
The government said more than 600,000 barrels, or about 100 million liters, of jet fuel would arrive from early June, following discussions between Prime Minister Anthony Albanese and Chinese Premier Li Qiang.
Beijing 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.
Tourism and freight exports in the island continent are reliant on air travel, a sector heavily impacted by the climbing prices.
The jet fuel shipments are expected to arrive in June and follow talks between Albanese and Chinese Premier Li Qiang on energy security last month.
China supplied a third of Australia’s aviation fuel last year and is a major importer of Australian iron ore, coal and liquefied natural gas (LNG).
Canberra has highlighted to Beijing that jet fuel supports the Australian resources sector, officials said.
Australia’s Trade Minister Don Farrell is expected to meet his Chinese counterpart Wang Wentao in Suzhou this week on the sidelines of an APEC trade ministers meeting in the Chinese city.
Trade between Australia and China reached Au$326 billion ($233 billion) last year, dominated by Australian commodities exports.
Farrell is expected to arrive in Tokyo on Tuesday, to discuss energy security and trade.
Japan is another major buyer of Australian LNG and coal.
Australia said this month it will reserve the equivalent of 20 percent of gas exports for the domestic market to avoid supply shortfalls.
Urea from Brunei
Australia also secured 38,500 metric tons of urea from Brunei to support farmers and the agriculture sector, the government said.
Both shipments were secured through a new A$7.5 billion ($5.36 billion) fuel and fertilizer security facility.
The facility was established to help Australia’s agriculture and transport industries cope with supply pressures by providing financial help through loans, equity, guarantees, insurance and price support.
“The additional 600,000 barrels of jet fuel will help keep Australia moving, and the extra fertilizer will help provide certainty to our farmers,” Albanese said in a statement.
