Foreign Minister Cho Hyun and Australian Foreign Minister Penny Wong pose for a photo ahead of their talks at the Foreign Ministry in the Government Complex in Jongno-gu, Seoul, on the afternoon of the 30th April. Source: Yonhap News
This is the follow up article from ‘How reliable is South Korea in Australia’s energy security mix?’ last month’s edition.
Exemplary Energy team member, Hong Gic Oh, visited Korea, his homeland, last month and into early June and he brings now follow up news about the energy trade mix between South Korea and Australia.
Australia is Korea’s largest supplier of liquefied natural gas (LNG) and a major supplier of condensate and critical minerals, while Korea is a major supplier of refined petroleum products and diesel to Australia. South Korea heavily relies on imports for its natural gas needs, sourcing the vast majority of its Liquefied Natural Gas (LNG) from Australia, the United States, and Qatar. State-owned Korea Gas Corporation (KOGAS) dominates these purchases, but recent geopolitical disruptions and shifting domestic regulations have altered market dynamics.
Korea is one of the Indo‑Pacific’s key suppliers of refined fuels. Its four major refineries process more than 3 million barrels per day, making Korea a central source of petrol, diesel and jet fuel for Australia, particularly as domestic refining in Australia has been contracting. Korea’s refinery network and trade routes now form part of Australia’s practical fuel‑security architecture. At the same time, Australia has been actively adjusting its import portfolio to compensate for reduced Qatari supply, including increased reliance on alternative suppliers across Asia.
According to reporting by ABC News, Australia has actively moved to secure additional fuel and fertiliser supplies in response to disruptions linked to the Strait of Hormuz crisis. The federal government has utilised export finance guarantees to underwrite commercial fuel purchases and accelerate delivery of refined products, including diesel shipments sourced from multiple regions such as South Korea and Brunei. In parallel, additional fertiliser agreements have been secured through coordinated government–industry arrangements, aimed at stabilising agricultural input supply chains during the period of heightened geopolitical uncertainty. These measures reflect a proactive diversification strategy, with Australia engaging directly in global spot and contractual markets to offset volatility in traditional Gulf-linked supply routes.
Beyond trade, Korea is emerging as a partner in electrification and clean‑energy technologies. The government plans to deploy 3.5 million heat pumps over the next decade and supply 4.5 million electric and hydrogen vehicles by 2030, supported by one of the world’s densest charging networks. Korea also aims to deliver 100 gigawatts of renewable electrical peak power by 2030, reshaping regional supply chains in batteries, EVs and clean‑energy equipment. For Australia, engaging with Korea’s accelerating transition is essential to remaining competitive in a decarbonising Indo‑Pacific.
Australia and the Republic of Korea have reaffirmed their role as core partners in regional fuel security amid the ongoing Middle East conflict and the effective closure of the Strait of Hormuz. In their 30 April 2026 Joint Statement, both governments renewed their commitment to maintain a stable, secure and reliable supply of diesel and other liquid fuels—an essential step as Australia faces heightened vulnerability in global energy markets. South Korea, already Australia’s largest supplier of refined petroleum products and its top source of diesel, confirmed that it will continue to prioritise open, rules‑based trade and resist unjustified import or export restrictions.
The two countries agreed to strengthen supply chain resilience, deepen regional cooperation and accelerate the energy transition, recognising that diversified and transparent fuel flows are now a strategic necessity. A key feature of the agreement is a mutual notification and consultation mechanism for potential trade disruptions, giving Australia advance warning of any fuel shortages and enabling timely preparation across critical sectors.
Australian ministers emphasised that Korean diesel imports underpin Australia’s ability to remain a reliable exporter of energy, food and commodities, while reaffirming Australia’s long‑standing role as a stable supplier of energy and resources to Korea and the wider region. The joint commitment underscores how exposed global supply chains have become—and how central the Australia–Korea partnership is to maintaining economic stability and energy security across the Indo‑Pacific. – Read more