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Australia FM says China agrees to collaborate on jet fuel exports / Photo: Adek BERRY - AFP
NYSE - LSE
Australia FM says China agrees to collaborate on jet fuel exports
Australia's foreign minister said Wednesday that China has agreed to work together to facilitate exports of jet fuel, in an attempt to ease supply disruptions caused by the war in the Middle East.
The conflict and closure of the Strait of Hormuz, through which a fifth of the world's crude oil transits, have caused fuel prices to soar and left many Asia-Pacific nations facing an energy crisis.
China, a major exporter of jet fuel and diesel to Australia and other countries, has avoided the worst of the war's energy impacts thanks to its vast oil stocks, but paused exports at the start of the war to protect its domestic supplies.
"I can confirm... that the Chinese government is facilitating engagement with Australian businesses on jet fuel," Foreign Minister Penny Wong told reporters in Beijing, following talks with her Chinese counterpart Wang Yi and Chinese Vice President Han Zheng.
She added that the move was "an important step, however, it is the first step".
Earlier in the day, Wong pressed her case to Han, telling him that refineries in the Indo-Pacific region have been disproportionately affected by the blockage of the Strait of Hormuz, according to an Australian foreign ministry readout.
In the talks, she called for greater reciprocity in trade, emphasizing that Australia's steady supply of raw materials and food to China should be matched by a reliable flow of gasoline, kerosene and fertilizers back to Australia.
"I made the point that the import inputs China supplies to Australia, including jet fuel, support the Australian resources sector, which in turn helps to maintain the flow of commodities that are so important in the bilateral trading relationship," Wong told the press conference.
China is set to resume exports in May with major state-owned companies applying for licenses to do so, the Financial Times reported Tuesday, citing industry sources.
Chinese authorities have not commented publicly on the matter.
During her talks with Chinese officials, Wong added: "We were able to speak frankly, as we do, about those areas of difference, including consular issues, human rights, foreign interference, and regional and international security."
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A.Gagnon--SMC
