Australia secures more jet fuel from China amid Iran war shortage

The Australian government says it secured three shipments of jet fuel from China and more agricultural-grade urea from Brunei, boosting fuel and fertilizer stocks amid disruptions caused by the Iran war.

The government says 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.

Australia also secured 38,500 metric tons of urea from Brunei to support farmers and the agriculture sector, the government says.

Both shipments were secured through a new $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 says in a statement.

The extra jet fuel represents about 1% of Australia’s annual consumption.

Foreign Minister Penny Wong says Australia is working with countries in its region to respond to the shock to the global economy and ensure the continued flow of essential fuels.

Australia, which imports most of its fuel, has ​experienced localized shortages since the Middle East conflict began at the end of February.