ASEAN Oil Stockpiling: Regional Scheme Set to Launch in 2027

TOKYO: ASEAN countries are expected to launch a joint oil product stockpiling scheme as early as 2027, with storage facilities planned in Indonesia and Thailand to help member states share fuel supplies during emergencies, Nikkei reported on Thursday.

Initially, the arrangement will allow the Philippines to purchase diesel and gasoline stored in Indonesia and Thailand during emergencies. Companies affiliated with Philippine state-owned oil firm PNOC are expected to sign letters of intent with storage operators in the two countries on Saturday.

The proposed scheme will use a “ticket” system, under which participating countries or companies pay an upfront fee to secure the right to purchase a specified volume of oil products held by companies in another member state during an emergency. According to Nikkei, a similar arrangement is already used in the European Union.

The initiative is being led by the Economic Research Institute for ASEAN and East Asia (ERIA), an international think tank established in Indonesia by Japan’s Ministry of Economy, Trade and Industry.

Laos and Timor-Leste are also considering joining the initiative. The scheme could eventually be expanded to cover all ASEAN member states and include crude oil, the report said.

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Japan is promoting the arrangement to strengthen regional energy security following supply disruptions linked to the Iran war.

Japanese Prime Minister Sanae Takaichi is expected to announce cooperation on joint oil stockpiling at the Asia Zero Emission Community summit in Manila on November 17.