Australia Secures Jet Fuel from China to Keep Flying in Energy Squeeze

Australia has secured three shipments of jet fuel from China totaling 600,000 barrels, Prime Minister Anthony Albanese said Tuesday, doubling the national supply. The Middle East conflict and closure of the Strait of Hormuz have caused fuel prices to soar and left many Asia-Pacific nations facing an energy crisis. 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.