ASEAN countries to launch joint oil product stockpiling system in 2027

In Manila on November 17, Japanese Prime Minister Sanae Takaichi is expected to announce cooperation among ASEAN countries in oil product stockpiling. The system itself is scheduled to become operational in 2027.

Under the system, storage facilities will be created in Indonesia and Thailand. In the initial phase, the Philippines will be able to purchase diesel fuel and gasoline from these countries' reserves in emergency situations. Companies linked to the Philippine state-owned oil company PNOC are expected to sign letters of intent with storage operators on Saturday.

The mechanism will operate on a "ticket" system. Participating countries or companies will pay in advance for the right to purchase a specific volume of oil products stored by companies in another country if an emergency arises. A similar scheme is used in the European Union.

In the future, the system may be expanded to include crude oil reserves. The initiative is promoted by the Economic Research Institute for ASEAN and East Asia, an international analytical center established in Indonesia at the initiative of Japan's Ministry of Economy, Trade and Industry.

Japanese authorities associate the project with strengthening the region's energy security following supply disruptions caused by the war in the Middle East.