ASEAN Nations Establish Joint Oil Stockpiling Scheme with Indonesia and Thailand as Hubs
The Association of Southeast Asian Nations (ASEAN) has agreed to implement a joint oil product stockpiling scheme, with Indonesia and Thailand designated as primary storage hubs. This initiative, slated to commence as early as 2027, aims to bolster regional energy security, particularly in response to supply disruptions stemming from the conflict in Iran. The system will operate on a 'ticket system,' allowing participating countries or companies to pre-pay for the right to purchase specific volumes of oil products stored in other member states during emergencies. This mechanism, similar to one utilized in the European Union, enables access to energy supplies without each nation needing to construct its own storage facilities. The Philippines is expected to be among the first to utilize this system, with its national oil company affiliate scheduled to sign memoranda of understanding with storage operators in Indonesia and Thailand. The Economic Research Institute for ASEAN and East Asia (ERIA), established ...
