Singapore, Australia working towards legally binding protocol for essential supplies
Both prime ministers agreed to keep trade flowing, particularly during crises.
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SINGAPORE: Singapore and Australia are working towards a legally binding protocol on economic resilience and essential supplies under their free trade agreement, their leaders announced on Friday (Apr 10).
Speaking at a press conference with his Australian counterpart Anthony Albanese, Singapore Prime Minister Lawrence Wong said the two countries have agreed to accelerate negotiations on the protocol, which covers energy and other critical sectors.
"This is not just about managing today's crisis. It is about building trusted supply lines for a more uncertain future," he said.
In a joint statement, the two prime ministers agreed to keep trade flowing between the countries, with essential goods such as food continuing to move. This includes liquefied natural gas (LNG), which Australia supplies to Singapore – accounting for more than one-third of Singapore's LNG – and refined petroleum products like diesel, which Singapore supplies to Australia.
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A dialogue co-chaired by senior officials has been established to facilitate cooperation on economic resilience challenges and trade in essential supplies between the two countries.
Ministers from both sides have also been tasked to convene the inaugural Energy Ministerial Dialogue.
Australia is one of the world's top LNG producers, alongside Qatar, the US and Russia. Singapore generates about 95 per cent of its electricity using imported natural gas, comprising LNG and pipeline gas from neighbouring countries.
Mr Wong said he appreciated Mr Albanese's assurance that Australia will continue supplying LNG to Singapore. Likewise, Singapore will continue supplying refined fuels to Australia.
According to Australian government statistics for 2025, Singapore is Australia’s largest supplier of refined petroleum products. Singapore accounted for 26 per cent of Australia's refined fuel imports, close to 55 per cent of its gasoline imports, 23 per cent of its aviation turbine fuel imports and 16 per cent of its diesel imports.
"As a global refining hub, we will keep these flows going – as long as upstream supplies continue," said Mr Wong.
Responding to a question on whether Singapore will prioritise Australia if it has to start restricting exports, Mr Wong said Singapore does not plan to restrict exports.
"We didn't have to do so even in the darkest days of COVID, and we will not do so during this energy crisis," he said.
When asked if Australia is prepared to increase LNG exports to Singapore or the region if supply shocks worsen, Mr Albanese said Australia will continue to provide support for Singapore.
Mr Wong pointed out that Singapore has recently centralised gas procurement under a single gas company, rather than relying on multiple commercial importers.
"So that allows that single entity to look at managing our overall gas portfolio, diversify different sources, and also manage the risk in terms of the duration of contracts. So this gas company is doing just that right now, overseeing its entire portfolio of gas procurement and looking at how we can best manage the risk, and certainly in the process of doing so, it will look to Australia to assess more gas on a commercial basis, and hopefully more long-term gas as well."
RESPONDING TO GLOBAL UNCERTAINTY
Mr Albanese's visit comes against the backdrop of a worsening global energy crunch linked to conflict in the Middle East, which has disrupted supply chains and driven price volatility.
In the joint statement, both leaders reaffirmed their support for the current ceasefire in the Middle East and encouraged negotiations to bring an end to the conflict, recognising the significant economic impact of the crisis.
Speaking to reporters, Mr Wong acknowledged that tight global markets, where demand exceeds supply, are putting pressure on energy prices, with limited ability for individual countries to influence broader trends.
Instead, he said Singapore and Australia are focusing on mutual support and coordination to strengthen resilience and ensure continuity of supply.
Meanwhile, Mr Albanese stressed during his remarks that cooperation between the two countries creates a “win-win” outcome, helping to deliver energy security and resilience for both nations.
Responding to questions from the media, Mr Albanese said Australia's position on the Strait of Hormuz is clear, stating that it should be open.
Echoing this, Mr Wong said Singapore’s position is grounded in international law, including the right of transit passage through major waterways like the Strait of Hormuz.
In response to a question on whether Singapore will rely more heavily on alternative suppliers, given that the country has already ruled out negotiations on safe passage through the strait, Mr Wong said Singapore's companies source feedstock from all over the world.
"As far as energy supplies are concerned, we believe it's a global energy market. Our company sources feedstock from all over the world subject to prevailing laws and whatever sanctions regimes or arrangements are in place.
"We expect companies to uphold these international agreements and obligations, but subject to that, oil is fungible. As long as more oil enters the global energy market, it is good for the world, and our companies based here in Singapore are deeply connected to the different flows of energy supplies around the world.
During his remarks, Mr Wong pointed to how the two countries worked closely during the COVID-19 pandemic to keep critical supply chains open.
"These are uncertain and unprecedented times. But it is precisely in such times that partnerships matter most. Singapore and Australia have tackled challenges together before," he said.
"Our partnership is built on trust and that trust is enabling us to act decisively today. In a more fractured and volatile world, we choose to stay open, to stay connected, and to stand together.
"Through the strength of our partnership, I am confident that Singapore and Australia will not just get through the crisis – but we will emerge stronger and more resilient," he added.
The two leaders also called on other trading partners to join them in ensuring global energy supply chains are kept open.
Mr Albanese was on the second day of his three-day official visit to Singapore. On Friday morning, he visited the Singapore LNG Terminal and Singapore Refining Company on Jurong Island.
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