ASEAN Plans Shared Diesel, Gasoline Reserves for 2027
MONTREAL (Oil Monster): Southeast Asian countries are preparing a joint petroleum product stockpiling scheme that could begin as early as 2027, allowing participating nations to access emergency diesel and gasoline supplies stored in Indonesia and Thailand, according to a November 12 report by Nikkei.
The initiative aims to strengthen regional energy security following supply disruptions linked to the Iran war. The Philippines is expected to be among the first countries to participate.
- ASEAN's joint fuel stockpiling scheme could begin in 2027.
- Indonesia and Thailand are the proposed initial storage locations.
- The Philippines would gain emergency access to diesel and gasoline.
- A ticket-based system would provide advance purchasing rights to stored fuel.
- Initial agreements are expected on November 14, 2026.
Philippines to Gain Access to Regional Fuel Stocks
Under the proposed arrangement, Philippine National Oil Company (PNOC)-affiliated businesses would obtain rights to purchase petroleum products stored by operators in Indonesia and Thailand during emergencies.
The companies are expected to sign letters of intent with storage operators on November 14. The proposed agreements have not yet been confirmed as completed.
How the Emergency Fuel Ticket System Works
The scheme would use a ticket-based mechanism under which participating governments or companies pay a fee in advance for the right to purchase a specified volume of fuel stored by an operator in another country during a supply emergency.
Similar arrangements are used in Europe. The approach could help participating countries improve access to emergency supplies by using existing commercial storage infrastructure.
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ERIA Leads Regional Stockpiling Initiative
The initiative is being advanced by the Economic Research Institute for ASEAN and East Asia (ERIA), a Jakarta-based international research organization supported by regional governments and Japan.
Laos and Timor-Leste are also considering participation. The arrangement could eventually expand to additional ASEAN members and include crude oil, although those steps remain proposals.
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The proposed ticket system would allow participating countries to secure emergency purchasing rights to diesel and gasoline stored across borders, potentially reducing the need to construct separate national facilities for every reserve requirement.
The key operational test will be whether contracted volumes can be delivered when needed. Storage availability, commercial terms and emergency transport arrangements will determine how effectively the scheme strengthens regional fuel security.
Japan Promotes Regional Energy Security
Japan is supporting the initiative as Southeast Asian economies seek greater protection against supply disruptions and volatile international energy markets.
Japanese Prime Minister Sanae Takaichi is expected to announce cooperation on joint oil stockpiling at the Asia Zero Emission Community summit in Manila on November 17, according to the Nikkei report.
The proposed scheme remains at an early stage, with the initial agreements and implementation arrangements yet to be finalized.
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Courtesy: Reuters.