Malaysia’s Petronas to supply excess fuel to Australia as leaders vow closer energy ties
The South-east Asia country is widely considered as a global leader in halal processing due to its established certification standards
Published Thu, Apr 16, 2026 · 02:02 PM
[SYDNEY/KUALA LUMPUR] Malaysia Prime Minister Anwar Ibrahim said on Thursday (Apr 16) that state energy firm Petronas would give priority to providing Australia with its excess fuel supplies, as the two countries sought to bolster energy security following the disruptions caused by the Middle East conflict.
Anwar said that he had obtained an assurance from Petronas on the matter following discussions with his Australian counterpart Anthony Albanese on boosting agricultural and fuel trade.
“The priority is for domestic requirements… but here is where negotiations among friends are critical,” Anwar said at a press conference after the meeting at his office in Malaysia’s administrative capital Putrajaya.
Malaysia also requires mineral phosphates from Australia, which it could offer in exchange for urea supplied to Canberra, Anwar said.
Malaysia is Albanese’s third stop in South-east Asia in the past week, following trips to Singapore and Brunei, as Canberra looks to shore up food and energy supplies.
Albanese said that his government had secured an additional 100 million litres of diesel from two shipments, one from Brunei and one from South Korea.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
“This is the first of many expected shipments secured under the government’s new strategic reserve powers with the support of Export Finance Australia,” he said.
Australia also pledged to honour existing contracts with Malaysia, despite disruptions, Albanese said.
Australia is a major supplier of natural gas to Malaysia, which imports about 20 per cent of its domestic supplies, as well as a provider of wheat, lamb and beef products.
Anwar and Albanese also witnessed the signing of a memorandum of understanding between the two countries on halal meat trade, a deal that the Australian leader said that would boost the country’s red meat exports and support Malaysia’s food security.
Majority-Muslim Malaysia is widely considered as a global leader in halal processing due to its established certification standards. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
