Key facts
- Japan plans to discuss concrete steps to increase oil reserves and supply resilience with Asian countries.
- Japan will hold a special meeting with Saudi Arabia and the UAE to boost cooperation.
- POWERR Asia is backed by a planned $10 billion support package to help Asian countries increase oil stocks.
- Southeast Asian nations agreed on a petroleum security agreement in the spring for coordinated emergency fuel sharing.
Japan is seeking to bolster regional oil reserves and supply resilience by engaging with other Asian countries and key Middle Eastern producers. The initiative comes amid ongoing fears about oil supply disruptions, particularly for Asian economies heavily reliant on imports.
Japanese Industry Minister Ryosei Akazawa stated that Japan plans to use the upcoming Asia Zero Emission Community (AZEC) meeting to agree on action plans for increasing oil reserves in the region. Resource-poor Japan, which imports nearly all its oil and gas, has been particularly sensitive to supply chain disruptions, especially those affecting the Strait of Hormuz.
Prime Minister Sanae Takaichi had previously proposed the Partnership on Wide Energy and Resources Resilience (POWERR Asia) to enhance regional oil reserves, backed by a planned $10 billion (1.5 trillion Japanese yen) support package. This initiative aims to help Asian countries build up their oil stocks and safeguard against future disruptions.
Japan also intends to hold a special meeting with Saudi Arabia and the United Arab Emirates, two of the largest crude oil exporters from the Middle East, to foster greater cooperation between Gulf producers and Asian consumers. Japan aims to position itself as a hub connecting these producers with Asian markets.
In the spring, Japan participated in an International Energy Agency-coordinated effort to release 400 million barrels of crude and oil products from strategic reserves. Southeast Asian nations, which have been significantly impacted by Middle East supply issues, also established a petroleum security agreement to facilitate coordinated emergency fuel sharing and collective responses to supply disruptions. Countries like the Philippines, Indonesia, Malaysia, and Vietnam were among the first to experience fuel shortages due to the blocked Strait of Hormuz.