Energy security is a top priority globally, as governments grapple with the closure of the Strait of Hormuz, an accelerating clean energy transition and surging power demand from AI data centres.

The problem is especially acute for Asia and the Pacific, as both regions are highly dependent on imported fuels.

This is where Australia could step up as a regional energy superpower, rich in both renewables and fossil fuels. Australia could form a new energy security alliance to stabilise regional markets for the long-term.

In the short term, this would mean guaranteeing supplies of liquefied natural gas. In the longer term, green exports such as renewable fuels and battery minerals could form the bedrock of Australia’s energy relationship with Asia.

Energy insecurity is rife

The war between the US-Israel and Iran triggered a major disruption to fossil fuel supplies.

After Iran closed the Strait of Hormuz, Asia lost 80 per cent of its oil supply and 27 per cent of its natural gas supply. Flow-on impacts to Pacific nations were significant, as these island nations rely heavily on diesel and food imports.

The deal to end the Iran war doesn’t mean an end to these challenges. This year has shown the risks of relying on Middle Eastern oil and gas producers in a conflict-prone region.

Asia-Pacific governments are looking for reliable partners to ensure energy security.

The world’s top two powers, the US and China, are jostling to expand their........

© The New Daily