India, Japan agree on crude oil stockpiling & reserve systems

New Delhi: India and Japan have agreed to develop a joint strategy to enhance energy resilience, including the creation of stockpiling and reserve mechanisms for crude oil and petroleum products, to protect consumers and industries from potential supply disruptions due to the West Asia conflict.

The two sides have also agreed to share information on market trends, coordinate efforts to stabilise energy markets, explore energy sourcing from third countries, and pursue investments in upstream energy projects in third countries. At the annual summit held here on Thursday, both countries highlighted the importance of regional initiatives to strengthen energy resilience, such as India's support for energy security in South Asia and Japan's Partnership On Wide Energy and Resources Resilience (POWERR Asia).

In a joint statement, India's petroleum and natural gas ministry and Japan's Ministry of Economy, Trade and Industry said the two countries will create mechanisms related to national stockpiling systems and reserves, including industry stockpiles, coordinate on arrangements with oil and gas producing countries, and focus on emergency response and market stabilisation.


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ET reported earlier this week that India and Japan are considering establishing a joint task force to cooperate on LNG stockpiling amid global supply chain disruptions.

The two sides have also agreed to explore collaboration and joint investment across the maritime energy transport value chain.

They have also decided to promote institutional collaboration among relevant stakeholders, including Indian Strategic Petroleum Reserves Ltd., to deepen cooperation in the energy sector, including through technical and financial partnerships.

The two sides have also decided to hold discussions under the India-Japan Joint Working Group on Petroleum and Natural Gas under the aegis of the India-Japan Energy Dialogue.

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The two countries have also institutionalised economic security cooperation through creation of mechanisms and dialogues involving various stakeholders.

According to the India-Japan Joint Declaration on Economic Security Cooperation, the two countries have agreed to establish a structured framework for economic security cooperation by bolstering existing mechanisms and creating working groups and regular dialogues involving governments, industry, and other stakeholders. This was announced after the annual summit.