ASEAN to launch joint oil product stockpiling scheme as early as 2027, Nikkei reports

SEATTLE (Oil Monster): ASEAN countries will launch a joint oil product stockpiling scheme as early as 2027, with storage ​sites planned in Indonesia and Thailand, to allow ‌member states to share supplies during emergencies, the Nikkei business daily reported on Thursday.

• The scheme will initially enable the Philippines ​to buy diesel and gasoline stored in Indonesia ​and Thailand during emergencies. Companies affiliated with Philippine ⁠state oil firm PNOC are expected to sign letters ​of intent with tank operators in the two countries ​on Saturday
• The scheme will introduce a "ticket" system, under which participating countries or companies pay a fee upfront for the right to buy ​a certain volume of oil products stored by ​another country's companies during an emergency. The system is used in ‌the ⁠European Union, Nikkei said
• The initiative is led by the Economic Research Institute for ASEAN and East Asia (ERIA), an international think tank established in Indonesia by Japan's Ministry of ​Economy, Trade ​and Industry
• Laos and ⁠Timor-Leste are also considering joining, while the scheme could eventually be expanded across ​ASEAN and to crude oil, the report said
• Japan ​is ⁠promoting the scheme to strengthen regional energy security after disruptions caused by the Iran war. Prime Minister Sanae Takaichi ⁠is ​expected to announce cooperation on ​joint oil stockpiling at an Asia Zero Emission Community summit in Manila ​on November 17

Courtesy: www.reuters.com