With the US-Iran conflict and closure of the Strait of Hormuz exposing major energy supply chain vulnerabilities in the Indo-Pacific, a new report from the United States Studies Centre (USSC) at the University of Sydney says Australia has a unique role to play in bolstering energy security.
Earlier this year, USSC convened government officials, industry representatives and energy experts from across the Indo-Pacific region to examine how Australia and its partners could strengthen regional energy security. In Energy and power: What the Strait of Hormuz crisis means for energy security in Australia and the Indo-Pacific, authors USSC Research Fellow Robert Monterosso and USSC Research Associate Sahara Hoff summarise the three conclusions that emerged from this discussion:
- Regional partners are looking to Australia to help secure their long-term energy needs.
- The Indo-Pacific needs to build greater energy system resilience and preparedness.
- Australia should lead the establishment of an Indo-Pacific energy security partnership with key allies and partners.
“Australia sits at the end of a very long fuel supply chain that stretches from the Strait of Hormuz and through Asia," USSC Director of Economic Security Hayley Channer noted. "Supporting regional energy security and resilience, particularly for our Southeast Asian partners, supports our own fuel security."
Australia has a reciprocal energy relationship with the countries in the region
Australian LNG and coal exports and fuel imports from key Asian markets
Sources: DFAT, USSC analysis.
The report explores Australia’s reciprocal energy relationship with Asia, highlighting the importance of regional energy security to Australia’s own fuel and economic security. In light of a prolonged closure of the Strait of Hormuz, the report argues for Australia to play a leadership role in establishing a new regional energy partnership with Indo-Pacific allies. Participants noted that such a partnership should focus on the full energy value-chain – fossil fuels, electrification and renewables, and the critical minerals that support these technologies.
"As one of the Indo-Pacific's largest and most stable energy exporters, Australia has an important role to play in providing energy security to our region," Ms Channer concluded. "This role will become more important as energy supply from the Middle East remains constrained, and the region sees major increases in energy demand thanks to an AI data centre boom."
- Energy and power: What the Strait of Hormuz crisis means for energy security in Australia and the Indo-Pacific is now available to view or download.