More than six months since the start of conflict in the Middle East, the closure of the Strait of Hormuz still reverberates strongly in Asia.
This is not surprising given the region lost access to 60 per cent of crude oil and more than a quarter of LNG supply, along with critical volumes of refined products, fertiliser and chemical feedstocks.
Across Asia, nations responded quickly to the onset of the crisis, leaning into the supply chain levers and policy measures available to them. In a region of robust economic growth and rapidly escalating power demand, energy security is a challenge in the best of times, let alone when a key supply route has been severed.
Simultaneously, countries have been looking ahead. This is the second major energy shock to significantly affect Asia in the past five years. It won’t be the last.
What preparations can be made ahead of the next disruptive event? What can nations learn: firstly, from their own vulnerabilities, and then from the actions that have helped other countries weather the storm?
Diverse energy needs and challenges
Asia’s energy landscape is diverse and complex. Major economies such as Japan, South Korea and Singapore have virtually no domestic energy resources. Fast-growing and electricity-hungry economies abound throughout South and Southeast Asia, including Malaysia, Indonesia, the Philippines and Vietnam. And then there are India and China, the world’s two most populous nations, at differing stages of the economic development curve and with vast energy systems.
Technological development only adds to energy complexity. For example, Japan’s long-standing trend of declining power demand has now been reversed, with the arrival of AI and data centres among the biggest reasons why.
Clearly, there can be no one-size-fits-all energy solution for Asia. But there are common challenges between countries. The region is strongly dependent on energy imports, which are growing as established oil and gas fields continue to decline and enter depletion.
The Strait of Hormuz closure puts this to the test. How can nations safeguard energy security and optimise their energy systems if they rely on supply from other parts of the world, and sometimes the other side of the world?
This question is at the heart of the Asia Natural Gas and Energy Association’s new whitepaper: Rethinking Energy Security in Asia – best practices for an uncertain future.
Assessing responses across the region
The whitepaper examines the resilience and flexibility of energy systems across Asia, as well as individual nations’ responses to the closure of the Strait of Hormuz.
While it identifies seven key best practice areas for energy security, the whitepaper extends beyond theory, profiling case studies of nations that have learned from past crises and prepared accordingly.
These include Japan’s meticulous approach to national energy planning and supply diversity, Singapore’s centralisation of LNG procurement through the establishment of GasCo, and direct and deliberate investment from Asia that has unlocked new projects such as LNG Canada. The commitment of India and Indonesia to maximise domestic oil and gas production is also highlighted, alongside innovative steps from the Philippines and Vietnam to scale up their LNG-import capabilities, and China’s significant buildout of storage for gas and LNG.
Several themes resonate throughout the case studies. Countries which have focused on developing varied supply chains have been best placed to navigate this year’s disruption.
Japan’s long-term strategy of supporting LNG development in Australia, the United States, Brunei, Indonesia and Malaysia, as well as Qatar, has proven to be highly prudent. This has not only provided geographical diversity but spread supply across a range of pricing mechanisms and a variety of contracting terms.
Collaboration and cooperation between nations are essential to energy security and resilience. Soon after the start of conflict in the Middle East, Australia moved to shore up existing energy alliances with Singapore, Malaysia, Japan, South Korea and others.
While Australia has been Asia’s biggest single source of LNG supply over the past 10 years, its own refining capabilities have diminished considerably, and it now relies on regional partners for nearly all its gasoline, diesel and jet fuel supply. Reaffirmed commitments to two-way energy flow – Australian LNG in exchange for refined petroleum products from Asia – demonstrate the importance of building relationships before supply disruptions emerge.
Supply is an essential piece of the puzzle
Because of Asia’s reliance on imports, supply remains the largest swing factor for energy security. Nations in the region are making decisions about what their energy systems will look like decades from now and need confidence in supply to do so.
It’s crucial, therefore, that Australia continues to develop gas resources for both domestic and export markets and remains a dependable, geographically proximate source of LNG for Asia.
Similarly, ongoing growth of the United States’ LNG industry is vital. LNG production from the US – well-established as the world’s biggest exporter – has been central to global energy markets negotiating the turbulence of Russia’s invasion of Ukraine and now the closure of the Strait of Hormuz.
It’s assumed that planned expansion projects in the Middle East will eventually proceed, but new and emerging LNG producers will also be important for Asia. African supply to the region has expanded notably in 2026, Canada has more projects in the pipeline and substantial room for growth, and there is untapped potential in South America.
ANGEA’s energy security whitepaper offers a playbook that nations in Asia can call upon as they map out a future beyond the Middle East conflict. It also points towards actions that LNG exporting nations and allies in other parts of the world can take to ensure the energy needs of the world’s fastest-growing economic region are met.
Ultimately, sound decision making and careful planning at both ends of the supply chain, from exporters to importers, will determine how well-prepared Asia is for whatever disruption comes next.
Stephanie Duran is Acting CEO of the Asia Natural Gas and Energy Association. ANGEA provides deep energy industry expertise to help Asia Pacific countries adopt and execute pragmatic policies that balance national security, economic growth, and sustainable energy goals.
This article was first published by Energy News Bulletin
