ASEAN to launch joint oil product stockpiling scheme as early as 2027, Nikkei reports

TOKYO: ASEAN countries will launch a joint oil product stockpiling scheme as early as 2027, with storage sites planned in Indonesia and Thailand, to allow member states to share supplies during emergencies, the Nikkei business daily reported on Thursday.

The scheme will initially enable the Philippines to buy diesel and gasoline stored in Indonesia and Thailand during emergencies. Companies affiliated with Philippine state oil firm PNOC are expected to sign letters of intent with tank operators in the two countries on Saturday

The scheme will introduce a "ticket" system, under which participating countries or companies pay a fee upfront for the right to buy a certain volume of oil products stored by another country's companies during an emergency. The system is used in the European Union, Nikkei said


The initiative is 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, while the scheme could eventually be expanded across ASEAN and to crude oil, the report said

Japan is promoting the scheme to strengthen regional energy security after disruptions caused by the Iran war. Prime Minister Sanae Takaichi is expected to announce cooperation on joint oil stockpiling at an Asia Zero Emission Community summit in Manila on November 17.