Following a meeting with Malaysia’s Premier, Anwar Ibrahim, and the announcement of the LNG supply agreement, Japan’s Prime Minister Sanae Takaichi said, “Amid growing uncertainty in the international energy situation, cooperation with Malaysia, a stable supplier of LNG to Japan, is becoming increasingly important.”

As one of the world’s most energy import-dependent nations, Japan has historically relied heavily on supplies from the Middle East. Recent geopolitical events have prompted a concerted effort to secure alternative energy provisions.

The LNG supply agreement is a substantial component of this strategy, with the contract covering 2 million tons of liquefied gas annually. This adds to other supply agreements JERA has recently established, demonstrating a proactive approach to meeting its energy needs. The company, recognized as the largest buyer of LNG globally, has previously outlined plans to significantly increase its purchases from the United States, aiming to procure up to 5.5 million tons annually. Such an expansion would represent a 10% increase in its current U.S. imports, potentially accounting for one-third of its total LNG procurement.

Malaysia holds a prominent position in Japan’s LNG import portfolio, serving as the second-largest supplier after Australia. Currently, Malaysia contributes approximately 15% of Japan’s total LNG imports. The nation’s energy demand is experiencing a notable rise, driven in part by seasonal factors such as summer temperatures that increase the need for air-conditioning, even with fluctuating prices. Reports suggest that Japan could face an LNG shortage if it does not manage to secure sufficient supply or enhance its coal-fired power generation capacity further. This situation has already compelled Japan, along with other Asian nations, to increase reliance on coal power due to tightening gas supplies from the Middle East and difficulties in acquiring LNG cargoes at competitive prices.

Searah consolidates assets from both Indonesia and Malaysia, creating a robust portfolio comprising 19 gas-producing and development assets. 14 of these assets are located in Indonesia, with the remaining 5 situated in Malaysia. Upon commencement of operations, the company is set to produce over 300,000 barrels of oil equivalent per day (boe/d). A key objective for Searah is to achieve a sustainable production level exceeding 500,000 boe/d within the next three years.

According to Eni, all necessary regulatory, governmental, and partner approvals in both Indonesia and Malaysia have been secured, and all conditions precedent have been met. To support its ambitious growth plans, the integrated energy JV has also secured a $6 billion revolving credit facility. This financial backing is intended to fuel future expansion, which includes projected investments of more than $20 billion over the next five years. These planned investments are designed to facilitate the development of over 3 billion barrels of oil equivalent in discovered resources, while also exploring additional exploration potential.

The establishment of Searah follows recent key developments. In March 2026, Eni announced final investment decisions for the Gendalo and Gandang fields in the South Hub, alongside the Geng North and Gehem fields in the North Hub. These projects collectively hold nearly 10 trillion cubic feet of gas initially in place and approximately 550 million barrels of associated condensate. Production from these fields is anticipated to commence in 2028, with plateau levels expected to reach 2 billion standard cubic feet per day of gas and 90,000 barrels per day of condensate by 2029.

Furthermore, the launch of the integrated energy JV follows Eni’s recent Geliga-1 gas discovery in the Ganal block, located in the Kutei Basin. This discovery is estimated to contain around 5 trillion cubic feet of gas and 300 million barrels of condensate in place. Eni stated that Searah will be instrumental in deploying the capital and resources necessary to meet the short-term production target of 500,000 boe/d, while simultaneously advancing further development opportunities.

Murphy Oil has been an active participant in Vietnam’s energy sector since 2012. The company is currently involved in and operates several key oil and gas contracts, including at the Lac Da Vang and Hai Su Vang projects. These ventures are anticipated to bolster the nation’s oil and gas supplies, thereby strengthening energy security and supporting Vietnam’s broader economic development.

During the meeting, Minister Hung acknowledged and highly praised Murphy Oil’s significant contributions to the nation’s oil and gas exploration and production landscape. He specifically encouraged the company, in its capacity as operator, to collaborate closely with all relevant parties. The objective is to ensure the effective implementation of existing contracts, particularly those concerning Blocks 15-1/05 and 15-2/17, emphasizing the importance of maintaining progress, quality, and efficiency in these undertakings. The minister also extended an invitation to Murphy Oil to proactively study and consider new investment opportunities and contracts in Vietnam. This consideration should be based on principles of investment efficiency, the harmonization of interests among all stakeholders, and strict adherence to Vietnamese legal frameworks.

Eric M. Hambly provided an overview of Murphy Oil’s global business strategy, reassuring the Vietnamese government that Vietnam continues to hold a position of importance as a partner. He expressed gratitude to both the Vietnamese Government and the Ministry of Industry and Trade for their support in facilitating the company’s oil and gas operations in recent years. Mr. Hambly also presented several recommendations pertaining to oil and gas activities within the country.

In response, Minister Hung affirmed that the Ministry of Industry and Trade would persist in its review and efforts to create favorable conditions, fully compliant with legal regulations. This commitment aims to offer continued support for Murphy Oil’s ongoing and future oil and gas operations in Vietnam. Recent developments include the PetroVietnam Exploration Production Corporation (PVEP) transferring a 5% interest and administration rights in Block 15-1/05 to Murphy Cuu Long Bac Oil Co. Ltd., further cementing the company’s presence and its role in Vietnam’s vital oil and gas sector. This strategic move highlights the ongoing expansion of Murphy Oil Vietnam investment.

Under the terms of the arrangement, INEOS will provide LNG on a Delivered Ex-Ship (DES) basis, taking responsibility for transporting cargoes directly to receiving terminals across Asia. The LNG supply deal will also represent INEOS Energy’s first LNG deliveries into the Pacific Basin, supporting its broader objective of developing a globally diversified LNG portfolio.

The expansion into Asia provides INEOS Energy with access to the world’s largest and fastest-growing LNG demand center. Demand for LNG across the region continues to be driven by increasing electricity consumption, ongoing industrial development, and efforts by several countries to transition away from coal toward lower-emission natural gas. The LNG supply deal further strengthens the company’s presence in global LNG markets and broadens its exposure beyond traditional operating regions.

Commenting on the agreement, Chief Executive Officer David Bucknall said the agreement provides a platform for further growth in Asia and strengthens the company’s strategy of developing a flexible and diversified LNG trading portfolio.

For Marubeni, one of Japan’s largest trading houses with extensive energy interests, the agreement offers additional long-term LNG supply at a time when buyers across Asia are seeking dependable sources of gas amid intensifying global competition for LNG cargoes. The LNG supply deal reflects a wider trend among suppliers seeking to position themselves for growing demand across Asian markets, particularly in developing economies where natural gas is expected to play an increasingly important role in both power generation and industrial activity.

The agreement also highlights the rising importance of portfolio players capable of supplying LNG across multiple regions rather than relying on output from a single project. Through this LNG supply deal, INEOS Energy reinforces its ambition to become a larger participant in global LNG markets while strengthening supply connections between Atlantic and Pacific Basin trading hubs.

The forum took place during Presidential Chief of Staff Kang Hoon-sik’s visit to Canada as a special envoy for strategic economic cooperation, marking his second trip to the country following a visit in late January 2026. Highlighting the significance of enhanced energy cooperation, Seoul’s industry ministry noted that “the energy and resource supply-chain environment is being reshaped by prolonged instability in the Middle East and intensifying competition over critical mineral supply chains.”

The ministry added, “In this context, Korea and Canada, which are geopolitically stable and share common values, are being regarded as each other’s best strategic partners.”

According to the ministry, South Korea will raise imports of Canadian crude oil from 4.88 million barrels in 2025 to as much as 16 million barrels in 2026, representing an increase of about 3.3 times. Authorities are also examining the possibility of increasing annual imports to 20 million barrels.

“In this case, Korea would emerge as Canada’s third-largest destination for crude oil exports after the United States and China,” the ministry said.

It further stated, “The two countries agreed to further strengthen such mutually beneficial cooperation, given that this also presents an opportunity for Canada which has supplied more than 90 percent of its crude oil production to the US to diversify its export routes to Asia, the world’s largest crude oil consumption region (by volume).”

The expansion of energy cooperation comes as South Korea seeks to diversify energy procurement and reduce dependence on routes passing through the Strait of Hormuz.

The LNG sector also featured prominently in the discussions. South Korea aims to secure 3.4 million metric tons of Canadian LNG annually, valued at 6.41 billion Canadian dollars ($4.6 billion), through increased investment in Canadian projects involving natural gas liquefaction plants and export infrastructure. The ministry said those volumes could be achieved if Seoul participates in the second phase of the LNG project in Kitimat, British Columbia, where a final investment decision is expected by the third quarter of this year.

Officials said continued energy cooperation in LNG could increase the share of Canadian LNG in South Korea’s imports from 1.7 percent in 2025 to 3 percent in 2031.

The proposed framework represents a significant policy development for the country as it seeks to establish strategic oil reserves and enhance long-term supply resilience. Through POWERR Asia, the DOE aims to create additional supply buffers while reducing the nation’s dependence on unhedged, spot-market imported fossil fuels. As part of the initial phase, the government intends to build entirely new, state-of-the-art stockpiling facilities. Supporting this process, the Ministry of Economy, Trade and Industry of Japan is expected to send technical experts in the coming days to issue the preliminary terms for comprehensive feasibility studies, formally launching the project’s development phase.

Following the start of the project, developers selected to participate will be required to adhere to a strict, multi-year construction schedule in order to achieve operational readiness. Those involved in the development process will also receive technical capacity building from the Economic Research Institute for ASEAN and East Asia and the Japan Organization for Metals and Energy Security. The DOE believes that the development of strategic oil reserves through these facilities will strengthen the country’s preparedness against future supply disruptions while creating a more resilient energy framework.

To reduce financial and construction-related risks, the DOE is encouraging project proponents to pursue joint ventures with Japanese trading companies and the Japan Bank for International Cooperation. This approach is intended to support execution across engineering, procurement, and construction activities while ensuring reliable project financing. The Philippines and Japan have already completed the foundational alignment of POWERR Asia, establishing a cooperation matrix that includes both government-backed technical assistance and direct private-sector capital participation to support the development of strategic oil reserves.

The infrastructure initiative follows earlier actions taken by the Marcos administration during the recent energy crisis. At the height of that period, the government utilized a ₱20 billion emergency fund to purchase approximately two million barrels of refined petroleum products and liquefied petroleum gas to stabilize domestic inventories. Since then, the DOE has suspended additional emergency procurement activities, stating that the country’s fuel reserves are currently at a comfortable level.

The Deputy Prime Minister characterized the long-standing partnership between the two energy giants as a definitive bright spot within the broader economic framework of Vietnam-Russia relations. This diplomatic engagement serves as a direct implementation of high-level agreements previously established between Russian President Vladimir Putin and the General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam, aimed at fortifying the Comprehensive Strategic Partnership between the two nations.

The dialogue between Zarubezhneft, the Vietnamese Ministry of Industry and Trade, and Petrovietnam is expected to yield more effective and sustainable bilateral outcomes. Central to this success is the Vietsovpetro joint venture, which the Deputy Prime Minister highlighted as a premier model for attracting foreign investment. This venture has not only symbolized the strength of Vietnam-Russia oil and gas cooperation but has also played a pivotal role in the technical evolution of Vietnam’s domestic energy sector.

General Director Sergey Kudryashov provided an overview of the 45-year history of collaboration, noting that the partnership has remained resilient and productive. A significant milestone in oil and gas cooperation was reached in 2025 when, under the witness of both heads of state, Zarubezhneft and Petrovietnam signed protocols to extend the operational lifespan of their joint ventures in both Vietnam and Russia through 2050.

Beyond traditional extraction, the two entities are actively exploring investment opportunities in third countries. Currently, Zarubezhneft holds the position of the largest Russian supplier of coal to the Vietnamese market, further diversifying the energy portfolio. Deputy Prime Minister Tuc expressed strong support for these expansion plans, suggesting that the energy partnership should evolve to meet modern demands.

The Vietnamese government has encouraged Zarubezhneft to leverage its technical expertise in areas beyond fossil fuels. Potential sectors for future growth include offshore wind power development and renewable energy infrastructure, advanced technology transfer, electricity generation and rare earth mineral exploitation.

The energy and supply chain cooperation was solidified during a meeting between South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi in Andong, North Gyeongsang Province. This reciprocal visit, following Lee’s earlier trip to Takaichi’s hometown of Nara Prefecture, marks a historic first exchange of hometown visits between sitting leaders of the two nations. This gesture underscores a growing sense of trust and a strong personal rapport, elevating the practice of “shuttle diplomacy” between Seoul and Tokyo.

“At today’s summit, building on the trust developed through our shuttle diplomacy to date, Prime Minister Takaichi and I had candid discussions on a broad range of issues as strategic partners in jointly responding to the rapidly changing international environment,” South Korean President Lee stated during a joint press conference following the summit. This meeting occurs amidst heightened strategic pressures for both neighboring countries, whose relationship has historically been complicated by past disputes.

The recent conflict in the Middle East, leading to the effective closure of the Strait of Hormuz, has exposed a critical vulnerability for South Korea and Japan. As two of the world’s most energy-import-dependent major economies, disruptions to Middle Eastern energy flows pose a significant threat to their economic stability.

“In particular, we agreed that close bilateral cooperation is needed more than ever amid the instability in supply chains and energy markets arising from the recent situation in the Middle East,” South Korean President Lee informed reporters.

President Lee highlighted specific areas of energy and supply chain cooperation, stating, the two countries agreed to strengthen cooperation in the sectors of liquefied natural gas and crude oil, which are key energy sources. The leaders reached a consensus to expand bilateral LNG cooperation and enhance channels for information sharing and communication regarding crude oil supply and stockpiling.

This expanded LNG cooperation is built upon a memorandum of understanding signed in March between Korea Gas Corp. and Japan’s JERA, focusing on the optimization of LNG operations. The agreement aims to facilitate LNG swaps and enable a unified response to supply crises, while carefully avoiding actions that could negatively impact each other’s supply chains. This strategic alignment is rooted in the shared reality of both South Korea and Japan operating major petrochemical and refining industries, relying heavily on Middle Eastern crude imports, and being among the world’s largest LNG importers.

The interconnectedness of their energy markets is further illustrated by trade figures. In the previous year, Japan was South Korea’s third-largest destination for petroleum product exports, accounting for 11.3 percent. Data from the International Gas Union’s 2025 report reveals that in 2024, Japan and South Korea stood as the second and third-largest global LNG importers, respectively, capturing 16.47 percent and 11.43 percent of the world’s total LNG imports.

President Lee also announced South Korea’s intention to join Japan’s “POWERR Asia” initiative, an acronym for Partnership on Wide Energy and Resources Resilience. This Japanese-led initiative seeks to foster enhanced cooperation with Southeast Asian nations in areas such as the construction and shared utilization of petroleum storage facilities. The initiative is backed by $10 billion in financial support, including loans and credit assistance provided by institutions like the Japan Bank for International Cooperation.

“Prime Minister Takaichi also proposed that our two countries work closely together to deepen cooperation on resource supply chains with other Asian nations facing supply disruptions,” Lee noted.

Japan’s Prime Minister Takaichi had previously unveiled the POWERR Asia initiative for Southeast Asian nations at the virtual Asia Zero-Emission Community Plus summit in April. South Korean Prime Minister Kim Min-seok had attended that summit representing Seoul.

During the joint news conference, Takaichi expressed her satisfaction with the energy and supply chain cooperation agreement to collaborate under the POWERR Asia framework. She emphasized a focus on strengthening energy supply resilience in the Indo-Pacific region, including expanded stockpiling capacity. Furthermore, she stated that the two nations would endeavor to enhance Korea-Japan energy security through mutual supply arrangements and swap transactions involving crude oil, petroleum products and LNG, adding that Seoul and Tokyo would explore concrete follow-up measures together.

This strategic acquisition of Chevron APAC Downstream encompasses a portfolio of assets across key markets including Australia, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. Through this deal, ENEOS will gain Chevron Singapore’s 50% stake in the Singapore Refining Company, alongside full ownership of several Chevron subsidiaries. A dedicated special purpose vehicle, based in Singapore, will manage the acquisition.

The entity will assume complete equity in Chevron Singapore, including its interests in the Singapore Refining Company and Chevron Lubricants Vietnam, as well as Chevron Malaysia, Chevron Philippines, Chevron Australia Downstream, and Chevron Oil Products Indonesia. The completion of this transaction is anticipated in 2027, subject to regulatory approvals and the fulfillment of customary closing conditions.

Miyata Tomohide, Representative Director and CEO of ENEOS said, “This investment represents a significant step in strengthening the business platform that connects Japan with South East Asia and Oceania, while bringing together the competitive strengths developed across each market to advance our Group’s growth to the next stage.”

He further elaborated that ENEOS will leverage the cultivated expertise, networks, and business foundations from each acquired market to enhance its fuel products business and trading capabilities, aiming for sustainable growth and long-term corporate value.

This Chevron APAC Downstream acquisition aligns with ENEOS’s strategic objective of portfolio reorganization under its Fourth Medium-Term Management Plan. The company is focusing on overseas fuel operations with the potential for accelerated monetization. The ENEOS APAC downstream acquisition is poised to facilitate expansion into the burgeoning South East Asian markets, where energy demand is projected to increase, thereby complementing ENEOS’s existing operations in Japan.

The integration of these assets is intended to optimize ENEOS’s supply chain across the Asia-Pacific region. The company has affirmed its commitment to regulatory compliance and ongoing stakeholder engagement throughout the closing process of the acquisition of Chevron APAC downstream assets. This expansion underscores ENEOS’s vision for advancing its global energy presence.

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.