Malaysia and Australia strike energy supply pledge to bypass Iran war disruptions
The deal creates a mutual spillover valve, allowing the partners to swap surplus energy once domestic demand is satisfied
Across Asia, governments have been scrambling for alternatives after crude oil and gas shipments from the Middle East were disrupted following Tehran’s move to choke access to the Strait of Hormuz in response to US-Israeli strikes against Iran that began on February 28.
The disruption has sent pump prices soaring and forced governments in the region to ration fuel for factories, power plants and farms while they look for new sources to bolster dwindling supplies.
Against that backdrop, Malaysia and Australia signed a joint statement on energy security, pledging to maintain a strong energy trade and potentially increase supply to each other after their domestic needs are met.
Australia provides nearly all of Malaysia’s liquid natural gas imports and is the Southeast Asian nation’s largest supplier of wheat, beef and lamb.
Malaysia, in turn, is an important source of refined fuel for Australia’s transport and industry, as well as urea – a widely used fertiliser – for its agricultural sector.