Media Release
22 June 2026
In recent months Australian exports of Liquefied Petroleum Gas (LPG) to Indonesia have increased to help fill the gap left by disrupted supply from the Middle East.
The increase in Australian supply comes as the effective closure of the Strait of Hormuz has disrupted global energy supply chains.
In the 2026 year to date, the number of Australian LPG cargoes to Indonesia have increased at least threefold compared to 2025, supplied by the Ichthys Project, operated by INPEX.
These additional shipments are helping Indonesia meet demand at a critical time.
Australian Ambassador to Indonesia, Rod Brazier, welcomed the strengthening cooperation, saying “As disruptions in the Middle East affect global supply chains, Indonesia and Australia are turning to each other, boosting Indonesian urea exports to Australia and increasing Australian LPG flows to Indonesia”.
The Head of the Center of Asia Pacific and Africa Region Policy Strategy, Ministry of Foreign Affairs of Indonesia, further stated, “This cooperation reflects the enduring friendship and strong partnership between Australia and Indonesia. It demonstrates how our two countries can work together to strengthen energy security, enhance supply chain resilience, and advance our shared economic interests."
The closure of the Strait of Hormuz has led to a major source of global LPG supply being cut off, impacting households and businesses which use it as a cooking fuel.
The LPG cargoes were supplied by the Ichthys project in Western Australia and Northern Territory. The project reflects strong Australia–Indonesia cooperation, with key infrastructure fabricated in Batam, underscoring the close ties between Australia’s offshore resources sector and Indonesian industry.
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