Key facts
- Japan will assist the Philippines in strengthening its petroleum reserves.
- The agreement will provide analysis and training to enhance the Philippines' energy resilience.
- The Philippines has faced energy crisis measures, including gasoline purchase restrictions, due to its reliance on Middle Eastern oil.
- Japan's support will include feasibility studies and capacity building for a stockpiling system.
- Japan and the Philippines aim to strengthen regional energy security through joint efforts.
Japan will assist the Philippines in bolstering its petroleum reserves under an agreement to be signed Thursday, Nikkei has learned. This initiative aims to enhance the Southeast Asian nation's resilience to energy shocks, particularly given its reliance on oil from the Middle East.
The agreement will involve Japan providing analysis and training to the Philippines. Japanese Prime Minister Sanae Takaichi and Philippine President Ferdinand Marcos Jr. are expected to finalize the details during their summit.
In a joint statement, Japan's Ministry of Economy, Trade, and Industry and the Philippines' Department of Energy confirmed Japan's support for the Philippines' planned strategic petroleum reserve program. This support will include conducting feasibility studies and providing capacity building for a stockpiling system, with cooperation from organizations like the Economic Research Institute for ASEAN and East Asia (ERIA), the Japan Organization for Metals and Energy Security (JOGMEC), and the Japan Bank for International Cooperation (JBIC), along with Japanese trading and engineering companies.
President Marcos Jr. has previously advocated for regional cooperation on oil stockpiling, calling for a study on joint oil stockpiling during the Asia Zero Emission Community Plus Online Summit and urging the early activation of the ASEAN Framework Agreement on Petroleum Security (APSA) Coordinated Emergency Response Mechanism. Japan has expressed support for the Philippines' commitment to ASEAN-wide joint stockpiling, with ERIA tasked with developing a roadmap for financing.
Japan also intends to engage with oil-producing countries, including those in the Middle East, to promote these efforts and bolster regional energy security. Furthermore, Japan and the Japan International Cooperation Agency are set to begin investigating public and private oil stockpiling systems across multiple Southeast Asian countries this summer.