Asian nations are rapidly enhancing their oil stockpiling capabilities and advancing renewable energy initiatives in response to supply vulnerabilities highlighted by the Iran war. Southeast Asia, heavily reliant on oil transported through the Strait of Hormuz, has been particularly affected, with 80% of this oil previously flowing to the region.
In a joint statement, nine Southeast Asian countries, along with Japan and Australia, emphasized the importance of developing individual and regional oil stockpiling systems. Japan has committed to action plans aimed at boosting crude oil reserves across Asia, following discussions with Saudi Arabia and the UAE on enhancing regional stockpiling capacity.
The Philippines plans to establish a national oil reserve by the end of 2027, with the possibility of transitioning it into a regional stockpile. Energy Secretary Sharon Garin stated that the terms for hosting a regional stockpile would be determined by individual countries, prioritizing local needs during emergencies.
Additionally, ASEAN countries pledged to increase the share of renewable energy in their power generation, targeting 30% in total primary energy supply and 45% in installed capacity. However, the region lags in green energy adoption, with renewables currently at 14.1% of primary energy. A preliminary agreement to develop a long-delayed regional power grid was also reached, aiming for faster implementation than previously planned.
