Asia looks to store oil, gas closer to home after Strait of Hormuz crisis

What the report says

Asian governments and energy companies are moving to expand oil and gas storage closer to home after the disruption caused by fighting around the Strait of Hormuz, according to Al Jazeera. The report says the conflict exposed how dependent the region is on Gulf energy supplies that normally pass through the chokepoint, prompting countries to look for more resilient ways to secure fuel.

Japan has taken a lead role in the response. In April, Prime Minister Sanae Takaichi announced a $10bn POWERR Asia initiative intended to help Southeast Asian economies obtain oil and petroleum products and, over time, build larger strategic stockpiles. The article says Thailand, the Philippines, Vietnam and India have also reviewed reserve levels and storage plans since the crisis, with some countries moving toward new or expanded state-held reserves.

Al Jazeera also reports that several Asian economies are exploring storage arrangements with Middle Eastern suppliers. The United Arab Emirates’ ADNOC already stores oil in locations including Singapore, India, South Korea and Japan, while other Gulf producers have existing stockpiles in parts of East Asia. India is considering storing some reserves at Fujairah, beyond the Strait of Hormuz, and South Korea may enlarge its own reserves.

In China, the crisis has reinforced official efforts to strengthen energy security through more pipelines, LNG storage and domestic infrastructure. The broader theme across the region, experts quoted by the outlet said, is reducing exposure to a single supplier or shipping route and building more flexible energy systems.