Australia leveraging coal and gas exports to lock in petrol supply from Asia partners in Freight News 30/03/2026 Australia has been using its coal and gas exports to Asia as leverage with countries such as South Korea and Malaysia to encourage them to continue supplying it with fuel amid concerns that wartime-style rationing may be needed within weeks. The war in Iran has highlighted a lack of energy security in Australia, which has minimal domestic petroleum supplies but has a heavy demand for fuel for transport and its farming and mining sectors. Looming shortages of petrol and diesel in Australia have prompted calls from analysts and the International Energy Agency for various measures such as rationing, work-from-home arrangements, boosting uptake of renewable energy and electric vehicles, improving coordination with suppliers in Asia, and increasing domestic oil production. Australia is the world’s third-largest exporter of liquefied natural gas (LNG) behind the United States and Qatar, whose supplies have been hit by Iran in recent weeks. About 40 per cent of Japan’s LNG imports come from Australia; other major buyers include China, South Korea and Taiwan. Australia is also the world’s largest exporter of coal, accounting for more than a third of global exports. Major buyers include Japan, China, India, South Korea, Taiwan and Vietnam. A government source told The Straits Times that Australian ministers have spoken to their counterparts across the region to indicate that Australia would keep up supplies of gas and coal, and to call for other countries to keep oil exports flowing as a “quid pro quo”. The source said Australia was trying to persuade other countries to not focus on domestic needs only and to back collective efforts to maintain energy exports. It’s in all of our interests to keep trade open,” the source said. “It is not hostile. We are advocating that continuing the supply will help all of us and the broader region.” Engagement with partners Worries in Australia about fuel supplies heightened after Malaysia, a major supplier, said on March 19 that it would prioritise its domestic needs over its trading partners. This followed moves by China to suspend some exports of jet fuel, diesel and fertilisers. Australian Prime Minister Anthony Albanese told Parliament on March 23 that he and other ministers have held talks in recent days with officials from Singapore, South Korea, Malaysia and Japan about supplies of oil to Australia. “We are engaged,” Mr Albanese said. “We are reliable partners when it comes to energy security, and we expect that to be a two-way flow.” Mr Albanese and his Singaporean counterpart Lawrence Wong spoke on March 23 before releasing a statement saying that both countries would “support the flow of essential goods such as diesel, and liquefied natural gas between our two countries, and to notify and consult each other on any disruptions with ramifications on the trade of energy”. “We call on other trading partners to join us in ensuring global energy supply chains are kept open, for the benefit of the security and prosperity of our peoples,” the statement said. Lucky’ to have leverage Mr Ben Picton, an analyst at Rabobank, told ST that Australia was ill-prepared for the current disruption to global oil flows, and needed to store greater reserves and reduce demand through measures such as promoting electric vehicles for consumers and trucking. But he said Australia was “lucky” to be a net energy expor