ASEAN Rethinks Energy Security Amid Gulf Crisis

The ongoing Gulf crisis has prompted ASEAN member states to reassess their energy security and transition strategies. Historically, ASEAN's energy security relied on access to affordable oil and gas from major exporters. However, this model proved vulnerable to geopolitical disruptions, with Middle Eastern supplies accounting for 95% of the Philippines' oil imports and 49% of Vietnam's gas imports before the crisis.

As ASEAN shifts towards cleaner electrification, new dependencies emerge linked to technologies, critical materials, and technical standards. Electricity demand growth across the region requires grid stability, secure supply chains, cross-border governance, and cybersecurity. The ASEAN Framework Agreement on Petroleum Security (APSA) and stronger emergency response mechanisms were fast-tracked in response to the crisis.

The regional resilience package looks beyond oil and gas towards energy diversification, including renewables, biofuels, electric vehicles, and cross-border power connectivity projects like the ASEAN Power Grid (APG). Meeting electricity demand growth will require substantial investment, with ASEAN needing over US$300 billion in grid expansion and modernization between 2025 and 2040.