Representatives of both Gulf producers attended a special session of the Asia Zero Emission Community (AZEC) in Manila on Thursday, joining discussions involving ministers from 11 partner countries, including Japan, Indonesia and Australia.
Japan’s State Minister of Economy, Trade and Industry, Kei Takagi, said Saudi Arabia and the UAE had expressed willingness to cooperate in expanding Asia’s oil stockpiling capacity.
The participating countries adopted a ministerial work programme aimed at strengthening petroleum reserves and improving their ability to withstand future supply disruptions. The agreement provides a framework for cooperation on procurement, storage infrastructure and emergency preparedness.
The initiative comes as Asian governments seek protection against interruptions to crude shipments following the conflict involving Iran, the United States and Israel. Disruptions around the Strait of Hormuz have exposed the dependence of major Asian economies on Middle Eastern oil.
Takagi said cooperation with the two Gulf producers would help strengthen energy security. Their participation brings major crude exporters into discussions previously centred largely on Asian importing countries and their emergency supply arrangements.
Japan is seeking to establish closer links between Middle Eastern suppliers and Asian consumers, including arrangements that could allow producing countries to maintain crude inventories nearer important markets.
Such arrangements could improve access to supplies during shipping disruptions, although their effectiveness would depend on storage capacity, commercial agreements and the terms governing emergency withdrawals.
The Manila discussions did not establish publicly confirmed commitments specifying additional crude volumes, storage investments or implementation deadlines from Saudi Arabia and the UAE.
Japan has separately proposed financial assistance worth approximately $10 billion under Prime Minister Sanae Takaichi’s Partnership in Wide Energy and Resources Resilience Asia initiative, known as POWERR Asia.
Announced in April, the programme is designed to help Asian countries finance energy purchases, expand storage facilities and establish emergency reserve systems. It also covers measures to diversify energy sources and strengthen supply chains.
Japan’s Ministry of Economy, Trade and Industry has identified regional oil stockpiling as a priority, reflecting concerns that several Southeast Asian economies lack sufficient reserves to absorb prolonged interruptions.
The vulnerability became apparent when shipping through Hormuz was disrupted, affecting deliveries from Gulf producers to refineries and fuel distributors across Asia.
Before the conflict, more than half of Southeast Asia’s crude imports originated in the Middle East. Japan depended on the region for approximately 90 per cent of its oil requirements.
The resulting supply pressures forced some governments and refiners to reconsider purchasing arrangements, fuel inventories and emergency distribution mechanisms.
Philippine Energy Secretary Sharon Garin emphasised the importance of collective preparedness against supply shocks during the Manila meetings.
The Philippines, which chairs the Association of Southeast Asian Nations this year, is examining plans to establish a national petroleum reserve by 2027. Officials have also discussed the possibility of developing regional storage arrangements.
Nine Southeast Asian countries, together with Japan and Australia, endorsed efforts to develop national stockpiling systems and explore voluntary regional reserves.
The proposed arrangements would allow participating governments to examine how stored petroleum could be made available during emergencies, although operational details remain subject to further negotiations.
Japan has considerable experience operating strategic petroleum reserves and has offered to share technical expertise on storage management, emergency releases and the institutional arrangements needed to maintain inventories.
Tokyo has also pursued direct discussions with Saudi Arabia and the UAE about expanding stable crude supplies, replenishing jointly managed storage and strengthening transport capacity.
During visits to both countries in May, Japan’s Economy, Trade and Industry Minister Ryosei Akazawa raised proposals covering additional Asian reserves and cooperation on alternative supply routes.
The broader AZEC framework combines energy security with efforts to accelerate cleaner technologies, improve efficiency and reduce dependence on vulnerable fuel supply chains.
Thursday’s discussions coincided with wider ASEAN ministerial meetings examining electricity connectivity, renewable energy deployment and petroleum security.
Regional governments have also been working on an ASEAN power grid intended to facilitate cross-border electricity trading and reduce exposure to imported fossil fuels.
The Manila energy meetings included representatives of ASEAN member states and dialogue partners, alongside the ASEAN Centre for Energy and the Economic Research Institute for ASEAN and East Asia, which supports regional energy policy cooperation and research.
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