The ongoing conflict in the Middle East may prompt the Association of Southeast Asian Nations (ASEAN) to accelerate development of a regional energy-sharing mechanism, which would allow Member States to support each other’s oil and gas needs during supply disruptions, a Department of Trade and Industry (DTI) undersecretary said on Friday (March 13).
In a press briefing following the 32nd ASEAN Economic Ministers’ Retreat in Taguig City, DTI Undersecretary Allan B. Gepty said the AEM agreed to hasten the completion of the ASEAN Petroleum Security Agreement (APSA), which allows ASEAN Member States to provide petroleum supplies to neighbors facing shortages of at least 10 percent of their national domestic requirement.
“Well, in the statement, the economic ministers agreed and called for the advancement of the finalization of the ASEAN Petroleum Security Agreement, together, of course, with the achievement of our deliverables on ASEAN Power Grid,” Gepty said, referring to the joint statement issued by the AEM during the Retreat.
“So, basically the current situation will now call ASEAN Member States to fast-track that agreement,” Gepty said, noting that the regional bloc may act on it “at the soonest possible time.”
The original APSA was first signed in Manila in 1986, establishing a framework for Member States to share petroleum supplies.
In 2009, a modernized version was signed in Cha-am, Thailand that introduces the “10% critical shortage” rule and a focus on voluntary, commercial-based assistance.
In October 2025, the agreement was renewed at the 43rd ASEAN Ministers on Energy Meeting in Kuala Lumpur, Malaysia, keeping the safety net active through 2026 and expanding cooperation to include natural gas, considering Southeast Asia’s growing reliance on liquefied natural gas (LNG).
The AEM warned that ongoing geopolitical tensions in the Middle East are causing volatility in global oil and LNG markets, posing risks to economic stability across Southeast Asia.
Disruptions in key supply routes, such as the Strait of Hormuz, and rising international energy costs could affect trade, production, and transportation throughout the region.
To address these challenges, the AEM stressed the need to prioritize energy diversification, including renewable and alternative sources such as biofuels, and promote more efficient energy use.
The AEM emphasized stronger regional coordination, including contingency reserves and collaboration with ASEAN Dialogue Partners, to ensure an uninterrupted energy supply.
The AEM highlighted the importance of advancing other regional initiatives, such as the ASEAN Power Grid (APG) Enhanced Memorandum of Understanding and the Trans-ASEAN Gas Pipeline (TAGP), to ensure stable, secure, sustainable, and resilient energy connectivity and supply.
ASEAN is highly vulnerable to Middle East tensions, as most of its crude oil and a significant share of its LNG are imported from Gulf nations.