Philippines, Japan reinforce oil stockpiles amid Mideast tension
Tokyo summit commits Japan’s industry ministry and the Philippine energy department to cooperation on reserves, with a survey team due as early as June.
- The Philippines and Japan have agreed to cooperate on upgrading the Philippines' oil stockpiling system.
- The agreement is a response to an energy crisis linked to Middle East tensions, as the Philippines depends on the region for over 90% of its oil imports.
- Japan, which holds over 200 days of oil reserves, will provide support and share its expertise in managing strategic stockpiles with the Philippines, which currently has about 45 days of supply.
The Philippines is preparing to upgrade its oil stockpiling system with Japanese backing, after the two countries’ leaders reached an agreement at a summit in Tokyo on Thursday (May 28) amid an energy crisis linked to tensions in the Middle East.
After talks between Japanese Prime Minister Sanae Takaichi and Philippine President Ferdinand Marcos Jr., Japan’s industry ministry and the Philippines’ Department of Energy released a joint statement pledging to push ahead with cooperation in the sector.
The support will be provided under “Power Asia,” a Japanese government programme designed to assist Asian countries on energy matters. A delegation made up of ministry officials, think-tank members and private-sector representatives is expected to travel to the Philippines as early as June to carry out a survey.
The Philippines depends on the Middle East for more than 90 per cent of its oil imports. In March, it declared a national energy emergency after a de facto blockade of the Strait of Hormuz, a major chokepoint for oil shipments.
The Philippine energy department says the country currently holds oil reserves equal to around 45 days of gasoline and diesel supply.
Japan, which expanded its reserves following the oil crises of the 1970s, has built up government and private-sector oil stocks covering more than 200 days of domestic consumption. Manila is seeking to draw on Japanese know-how in managing oil reserves.
Speaking at a press conference after the summit, Takaichi said she was confident the cooperation would “enhance regional self-reliance and resilience under an updated Free and Open Indo-Pacific vision.”
[Copyright The Jiji Press, Ltd.]
