Get all your news in one place.
100's of premium titles.
One app.
Start reading
AAP
AAP
Politics
Zac de Silva and Andrew Greene

PM cuts short Asian fuel mission after refinery fire

A refinery blaze has prompted Anthony Albanese to cut short his Malaysian visit and return home. (Bianca De Marchi/AAP PHOTOS)

The prime minister has cut short his fuel security mission in Malaysia to visit a Geelong oil refinery which went up in flames.

Anthony Albanese was scheduled to fly back to Sydney early on Friday but will now leave Kuala Lumpur on Thursday night, arriving in Australia early the next day.

The Viva Energy oil refinery is one of only two in Australia, and while the fire only damaged part of the facility there are fears it could lead to fuel shortages, particularly in parts of Victoria.

Mr Albanese will meet with leaders from the refinery to receive an update on the impact of the blaze. He'll be accompanied by Energy Minister Chris Bowen and Defence Minister Richard Marles.

refinery
There are fears the refinery blaze could lead to fuel shortages, particularly in parts of Victoria. (PR IMAGE PHOTO)

There will need to be an assessment of the fire's impact on fuel supply, Mr Albanese told reporters after meeting with Malaysia's prime minister on Thursday.

''Clearly, there will be consequences for it, but there'll be a proper assessment taking place over the coming short period as well,'' he said.

The visit to Malaysia resulted in a deal where Australia will receive an extra 100 million litres of diesel to help deal with the fallout from the Iran war.

Details of the additional supplies were revealed by Mr Albanese after formal talks in Kuala Lumpur with Malaysian counterpart Anwar Ibrahim that focused on ensuring energy supplies continued between both nations during the oil crunch.

The imports will come via shipments from Brunei, which Mr Albanese visited before his Malaysia trip for energy-security talks, and from South Korea under export finance regulations.

Prime ministers Anwar Ibrahim and Anthony Albanese in Kuala Lumpur
Anthony Albanese received a formal welcome outside Anwar Ibrahim's office in Kuala Lumpur. (Bianca De Marchi/AAP PHOTOS)

In a joint statement signed inside the Malaysian government's Perdana Putra complex, the leaders agreed to a "no surprises" policy on the trade of critical oil and fuel supplies after disruptions caused by the Iran war.

"The world looks very different to when you were here last year ... global energy markets are under serious stress," Mr Anwar said at a joint media conference.

"Malaysia will always be a reliable partner to Australia," he assured his Australian guest.

The Southeast Asian nation is Australia's third-largest fuel supplier, providing 14 per cent of its diesel, 10 per cent of its petrol and 11 per cent of its jet fuel.

In turn, Australia provides almost all of Malaysia's liquefied natural gas imports.

malaysia
The Putra Mosque dominated the skyline as Australia and Malaysia's leaders met in Kuala Lumpur. (Bianca De Marchi/AAP PHOTOS)

Still, Asian nations are concerned the Albanese government could introduce new export taxes on resources in the May budget.

"We commit to promote open and stable trade flows between our two countries, including for essential energy supplies," the pair said in a joint statement after meeting at the official offices of the Malaysian leader.

"We will exchange views on energy trade-related matters on a 'no surprises' basis, and deepen practical co-operation on energy security for both countries.

"Both countries serve as energy suppliers to one another, underpinning a mutually important energy security relationship."

malaysia
Anthony Albanese inspected a guard of honour as part of his welcome to Kuala Lumpur. (Bianca De Marchi/AAP PHOTOS)

Following the meeting with the Malaysian prime minister, Mr Albanese held talks with executives from one of Asia's largest oil companies inside the Malaysian Petroleum Club, seeking to secure more supplies for Australia in response to the fuel crisis.

Visiting Kuala Lumpur's Petronas twin towers, Mr Albanese sat down with senior leaders from the state-owned oil giant after which the building is named.

He spoke of strong trade ties between Australia and Malaysia, particularly in the energy sector, with Petronas having taken a stake in Queensland's Gladstone LNG project.

"Friends need to work together, because we are living in very turbulent times," Mr Albanese said as the meeting opened.

Brunei
Anthony Albanese also visited Brunei to snare a guarantee fuel or fertiliser shipments won't be cut. (Bianca De Marchi/AAP PHOTOS)

Mr Albanese described the twin towers in downtown Kuala Lumpur as iconic and said it was his fourth visit to Malaysia, having travelled to the country twice as a tourist in his younger years and one other time as prime minister.

Malaysia also imports hundreds of millions of dollars worth of Russian oil and fuel each year, some of which is sold on to Australia.

Ukraine has called for a total ban on the use of Russian oil.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.