According to the DOE, the shipment of 21,000 MT of LPG is scheduled to arrive between 20 and 31 May 2026, with discharge operations set to take place in Batangas. Authorities expect the incoming cargo to bolster supply buffers and contribute to maintaining stability across the domestic LPG market. As of 17th April 2026, national LPG inventory levels stood at 40.26 days of supply, representing an increase of approximately 4 days compared to the previous week. The DOE indicated that the additional volumes will further expand supply availability and support broader government initiatives aimed at ensuring consistent access to essential fuel commodities.

The Department highlighted the importance of LPG as a critical household fuel used by millions of Filipinos for cooking and everyday applications. In this context, securing 21,000 MT of LPG is positioned as a key measure to mitigate potential supply disruptions and sustain market confidence.

“Ensuring a stable and reliable supply of LPG is central to our responsibility to protect the welfare of every Filipino—from households that depend on it for their daily meals, to small businesses that keep our communities running,” said Energy Secretary Sharon S. Garin.

The DOE added that it continues to work closely with relevant government agencies and industry stakeholders to track inventory levels, assess market conditions, and oversee logistics operations. Through this coordinated approach, the Department aims to implement timely measures that will maintain a steady and reliable LPG supply across the Philippines.

Drilled to a total depth of approximately 5,100 meters in waters about 2,000 meters deep, the Geliga-1 well encountered a substantial gas column in the targeted Miocene interval. The reservoir exhibits excellent petrophysical characteristics, and a Drill Stem Test (DST) is scheduled to further evaluate its productivity. The Geliga gas discovery builds on a strong exploration trajectory in the Kutei Basin, coming after the Geng North giant discovery in late 2023, located 20 km south of Geliga, and the Konta-1 well discovery announced in December 2025. These successive findings highlight both the scale and repeatability of gas resources across the basin.

The discovery also aligns with recent Final Investment Decisions (FIDs) for major regional developments, including the Gendalo and Gandang gas project (South Hub), and the Geng North and Gehem fields (North Hub). The North Hub development will utilize a newly constructed FPSO with a capacity of 1 billion standard cubic feet per day (bscfd) of gas and 90,000 barrels per day (bpd) of condensate, alongside the existing Bontang LNG Plant. Ongoing technical evaluations are examining accelerated development pathways, particularly given the proximity to existing and planned infrastructure, which could enhance time-to-market and cost efficiencies. The Geliga gas discovery is located near the undeveloped Gula gas discovery, and early assessments suggest that combined resources from Geliga and Gula could support production of an additional 1 bscfd of gas and 80,000 bpd of condensate. This opens up the possibility of establishing a third production hub in the Kutei Basin, mirroring the North Hub model.

Over the past six months, Eni has drilled four additional exploration wells in the basin, with further drilling activity planned, including one well in 2026 and two in 2027. The Geliga-1 well lies within the Ganal PSC, where Eni holds an 82% operating stake and Sinopec the remaining 18%. This block forms part of a broader portfolio of 19 assets set to be transferred into Searah, a jointly controlled entity between Eni and Petronas announced in November 2025. Searah aims to advance approximately 3 billion barrels of oil equivalent (boe) of discovered resources while unlocking further exploration potential. The transaction is expected to close in Q2 2026, with a parallel process underway to sell a 10% stake in Eni’s Indonesia portfolio.

The Geliga gas discovery contributes additional value to this portfolio as Eni continues its long-standing presence in Indonesia, where it has operated since 2001 and maintains a diversified upstream footprint with net production of about 90,000 barrels of oil equivalent per day.

Speaking after the discussions, Takaichi highlighted Japan’s reliance on South East Asia for petroleum-derived products, particularly in sectors such as medical equipment. “Japan is closely interconnected with each Asian country through supply chains and mutually dependent with them,” she said. The newly outlined framework, backed by $10bn financial aid, is intended to assist countries in procuring crude oil and petroleum products, while also strengthening supply chain resilience and increasing stockpiles. The urgency of the initiative reflects Asia’s vulnerability to disruptions in the Strait of Hormuz, through which nearly 90% of oil and gas shipments destined for the region pass.

According to Japan’s foreign ministry, the $10bn financial aid package is roughly equivalent to a full year of crude oil imports for countries within the Association of South-east Asian Nations. Leaders from the Philippines, Malaysia, Singapore, Thailand, Vietnam, Bangladesh and South Korea welcomed the plan during the meeting. Funding will be sourced through multiple institutions, including the Japan Bank for International Co-operation, Nippon Export and Investment Insurance, the Japan International Co-operation Agency, and the Asian Development Bank. Takaichi emphasized that the programme would not compromise Japan’s domestic oil availability.

By the end of 2025, Japan had reserves sufficient for 254 days of domestic consumption, although authorities have already begun drawing on these stocks amid the global energy crisis. Last month saw the release of a record 50 days’ worth of oil, with a further 20 days’ supply expected to be released in early May. Concerns have also been mounting over potential shortages of naphtha, a crude oil-derived petrochemical essential for producing plastics used in medical supplies such as syringes, gloves and dialysis equipment. While Takaichi sought to reassure the public, warning there would be no immediate disruption, apprehension persists that supply constraints could strain Japan’s healthcare system, which is already under pressure from an aging population. Across South East Asia, governments are responding to rising oil prices with conservation measures, while the Philippines has declared a national energy emergency. At the same summit, Philippine President Ferdinand Marcos Jr called on Asean to activate its fuel-sharing pact.

Despite maintaining a substantial buffer of 230 days’ worth of supply, Japan remains highly exposed due to its heavy dependence on imports, with 95% of its crude oil sourced from the Middle East. A significant portion of these shipments passes through the strategically sensitive strait of Hormuz, creating ongoing uncertainty for policymakers. Of the country’s oil reserves, 143 days’ worth are held by the state, while the remainder is split between private companies and oil-producing nations in the Gulf. In response to the evolving situation, authorities are accelerating efforts to diversify supply chains. By May, Japan expects to secure more than half of its imports via alternative routes, though Takaichi did not elaborate on specifics. Potential supply hubs include Yanbu on Saudi Arabia’s Red Sea coast and the Port of Fujairah in the United Arab Emirates, alongside outreach to suppliers in the US, Malaysia, central Asia, Latin America and Africa.

Domestically, the government has instructed suppliers to prioritize distribution of stockpiled fuel to critical sectors such as healthcare, transportation and agriculture. The renewed reliance on oil reserves also comes amid mounting political pressure at home. Public opposition to deeper involvement in the conflict has intensified, with more than 100 demonstrations staged nationwide on Wednesday. Around 30,000 people gathered outside the National Diet building, many holding banners supporting the war-renouncing article 9 of the constitution. The protests reflect broader concerns that Japan could be drawn into the crisis, particularly as scrutiny grows over Takaichi’s political stance and legislative influence.

The geopolitical backdrop has further complicated Japan’s response. A two-week conditional ceasefire announced by Donald Trump has raised questions over whether the strait of Hormuz will fully reopen, prompting Tokyo to hedge against prolonged disruption. At the same time, Takaichi has resisted external pressure to deploy Japanese Maritime Self-Defence Forces to the region, citing constitutional constraints. Her refusal of a direct request last month drew criticism from Trump, who has also rebuked South Korea for remaining on the sidelines. As uncertainty persists, Japan’s strategic use of oil reserves continues to play a central role in balancing energy security with political and diplomatic considerations.

The ongoing conflict involving the US, Israel and Iran has significantly disrupted global energy flows, particularly following the near-total closure of the Strait of Hormuz. This chokepoint has long been critical for oil shipments, and its shutdown has triggered a sharp supply squeeze across Asia. Refiners across the region are now under pressure to secure alternative sources of crude and refined products. In this context, Russian oil has become a viable option, as Washington’s waivers allow access to cargoes loaded before March 12. The policy move is aimed at stabilising global oil markets, although it has also drawn criticism for indirectly supporting Moscow’s revenues. At the same time, efforts to bring Iranian barrels back into circulation have seen limited traction, with buyers remaining cautious.

In South Korea, the situation remains uncertain as companies assess whether additional purchases can be completed within the waiver deadline. According to local broadcaster YTN, citing an official from the Industry Ministry, unloading and payment for Russian crude and naphtha must be finalised by 11th April 2026, when the waiver expires. Naphtha, widely used as a feedstock in petrochemical production and gasoline blending, remains an essential input for the country’s industrial sector. Elsewhere, Japan is also weighing its options as the conflict persists. While any move toward Russian oil would involve diplomatic considerations, the country continues to require steady supplies of crude and petrochemical feedstocks and already maintains imports of Russian liquefied natural gas.

Prior to the introduction of these waivers, purchases of Russian oil in Asia were largely concentrated among Indian refiners and independent processors in China. Concerns over potential restrictions tied to the US financial system had deterred other buyers. Even now, India and China remain dominant importers, with India expected to take about 60 million barrels this month, while Russian supplies have accounted for a growing share of China’s crude intake this year.

During the high-level meeting, Prime Minister Takaichi underscored Indonesia’s role as a critical energy supplier for Japan, which continues to rely heavily on the country for liquefied natural gas and thermal coal imports. However, the scope of the newly signed agreements extends beyond conventional energy trade. The $23.6 Bn Deal is structured to deepen collaboration across clean energy initiatives, oil and gas exploration, and industrial development, signalling a broader strategic alignment between the two economies.

A key component of the partnership is the advancement of the Abadi Gas Field project located in the Masela Block, a development that has faced delays in previous years. The project carries an estimated value of around $20 billion and will be executed through a joint effort between Indonesia’s state-owned Pertamina and Japan’s INPEX. In addition to its core development, the project includes a further $1 billion allocation toward carbon capture and storage technology, reflecting efforts to integrate emissions reduction measures into large-scale energy infrastructure.

Cooperation between Indonesia and Japan also spans renewable energy and low-carbon initiatives. Both countries are working on geothermal power projects and a methanol production programme that utilises captured carbon dioxide. These initiatives highlight a shared approach to balancing energy security with environmental objectives. President Prabowo noted that closer economic collaboration would contribute to regional peace and stability. As part of this broader framework, both nations are focusing on diversifying energy portfolios through hydropower, solar, and wind, while strengthening supply chains for critical minerals and rare earths. The $23.6 Bn deal, therefore, reflects a comprehensive effort to enhance resilience and address evolving global energy challenges.

Under the scope of the Japanese LNG project, a 180,000 kiloliter (kL) above-ground PC LNG tank will be installed alongside supply infrastructure, including LNG vaporizers, at the Sakaide LNG terminal. Operations are scheduled to begin in 2031. Kawasaki Heavy Industries will oversee construction of the LNG tank, while JFE Engineering will handle plant facilities, civil engineering, and construction work. Both companies bring extensive experience to the Japanese LNG project, with Kawasaki having delivered more than 70 cryogenic tanks domestically and internationally, and JFE Engineering contributing to the construction and expansion of LNG receiving terminals across Japan. The companies have stated their intention to continue supporting energy transition efforts aimed at achieving a carbon neutral society.

Sakaide LNG Company, which owns the terminal, is backed by Shikoku Power (70%), Cosmo Oil (20%), and Shikokugas (10%). The project site is located in Bannosumidoricho, Sakaide-shi, Kagawa. Currently, the Sakaide LNG terminal has a storage capacity of 180,000 cubic meters (cbm) and an annual throughput capacity of 1.2 million metric tonnes per annum. The facility began its operational journey with its first commissioning cargo in January 2010, followed by the start of commercial operations in March 2010. At that time, Kawasaki Heavy Industries acted as the sole contractor, delivering the full scope of engineering, procurement, construction, and subcontracting works.

The $333 million emergency fund will support the rollout of the DOE’s Emergency Energy Security Program, a framework designed to address supply vulnerabilities. Key measures under the program include the procurement of refined petroleum products, augmentation of LPG supply, and the buildup of domestic fuel inventories. Authorities have set a target volume of up to 2 million barrels of fuel, intended to meet local demand while cushioning the effects of global supply fluctuations. To operationalize the initiative, funds will be channeled to the Philippine National Oil Corporation (PNOC) and PNOC Exploration Corporation (PNOC EC), which will serve as implementing agencies.

Officials emphasized that the $333 million emergency fund enhances the government’s capacity to respond swiftly to disruptions in global petroleum markets. It is also expected to help maintain market stability and ensure the uninterrupted functioning of critical sectors such as transport, food logistics, power generation, and industry. “This is a strong intervention by the President to strengthen the country’s fuel security amid global oil market disruptions,” Energy Secretary Sharon Garin said. “The government is taking concrete and proactive steps to secure fuel supply, maintain orderly market conditions, and protect the welfare of every Filipino motorist.”

The department highlighted that protecting fuel supply goes beyond economic considerations, underscoring its role in enabling daily mobility, work, and essential services. The DOE added that it is closely coordinating with relevant government bodies and industry stakeholders to track supply conditions, enforce compliance with existing regulations, and take necessary steps to prevent supply constraints, unjustified price increases, and market abuse. As part of efforts to strengthen transparency and accountability, the department said it will disclose compliance results of government entities through its official website and other communication platforms.

A major step forward came in March 2026, when Conrad Asia Energy approved a final investment decision (FID) for the Mako gas project in the Duyung production sharing contract (PSC) area in the West Natuna Sea. The USD 320 million development is expected to deliver first gas in the fourth quarter of 2027 and is considered one of the largest undeveloped gas resources in the region. The project is part of a wider national push to reinvigorate upstream activity and curb reliance on energy imports. In 2025, Indonesia set ambitious production targets of 1 million barrels of oil per day and 12 billion cubic feet of gas per day by 2030, underscoring the importance of sustained investment in energy infrastructure.

Other major projects are progressing in parallel. The Abadi LNG development in the Masela Block, led by Inpex, secured environmental approval under Indonesia’s AMDAL framework in February 2026, marking a critical regulatory milestone. The USD  20 billion project could produce 9.5 million tonnes per year of LNG and will incorporate carbon capture and storage (CCS) systems to reduce emissions. Meanwhile, the Tangguh Ubadari, CCUS and Compression (UCC) project in West Papua, operated by bp and its partners, reached FID in late 2024 with an estimated value of USD7 billion. It is expected to unlock around 3 trillion cubic feet of additional gas resources while extending the life of the existing Tangguh LNG complex. In addition, Eni is advancing plans in the Kutei Basin, where the proposed Geng North and Gendalo-Gendang gas fields would form a “Northern Hub” aimed at consolidating offshore operations and improving project economics.

This surge in upstream activity is occurring alongside rapid expansion in Indonesia’s construction sector, which has become a key pillar of the national economy. Investment reached approximately USD 280 billion in 2024 and is projected to surpass USD 300 billion, according to HFW. Spending is heavily concentrated on transport and industrial energy infrastructure, including roads, ports, railways, airports, power generation facilities, refineries and urban transit systems. Over the past decade, the government has prioritized such projects to support its transition toward value-added industries and deeper integration into global supply chains. Under president Prabowo Subianto, Indonesia continues to promote large infrastructure programmes and public-private partnership (PPP) models to attract international investors from Japan, China, South Korea, Australia, as well as Europe and the Middle East.

The North Hub development involves 16 producing wells in water depths reaching up to 2,000 meters, connected to a newly constructed FPSO with a storage capacity of 1.4 million barrels. Conversely, the South Hub will see seven wells drilled at depths between 1,000 and 1,800 meters, tied back to the Jangkrik FPU. Collectively, these projects represent nearly 10 trillion cubic feet (tcf) of gas initially in place (GIIP) and 550 million barrels of associated condensate. By 2029, Eni expects to reach a production plateau of 2 Billion Standard Cubic Feet per Day (bscfd) of gas and 90,000 bpd of condensate. This surge in output reinforces the importance of the deepwater gas FIDS for Indonesia’s long-term energy security.

Eni’s recent deepwater gas FIDS align with a broader industry trend of large-scale offshore investments, including Eni’s planned business combination with Petronas to create a company producing over 500 thousand barrels of oil equivalent per day by 2029.

Beyond Eni’s efforts, Indonesia’s offshore potential is further highlighted by the Abadi LNG Project in the Masela Block. Operated by INPEX Masela, Ltd., this massive project aims for a yearly LNG production of 9.5 million tons and started its Front End Engineering and Design (FEED) phase in August 2025.

Another significant offshore project is Tangguh LNG, which represents an integrated, unitized development comprising six gas fields situated across the Wiriagar, Berau, and Muturi Production Sharing Contracts (PSCs) in Bintuni Bay, Papua Barat.

Operations for these newest deepwater gas FIDS are slated to begin in 2028, which will work to strengthen Indonesia’s offshore energy sector and domestic energy security.