Japan Seeks to Share Oil Reserves with Neighbors in Emergencies

Japan aims to implement a program that will allow countries in East Asia to share oil reserves when disaster strikes, The Nikkei learned Wednesday.

As a first step, the Japanese government will begin negotiations for such a program with New Zealand. The Ministry of Economy, Trade and Industry believes that an emergency-oil-sharing program in East Asia, where demand for oil continues to soar, will help stabilize oil prices and the
region’s economies when shortages hit.


Surging oil prices could lead to an economic breakdown in some countries, posing a threat to the increasingly integrated economy in the region.

Under a scenario drawn up by the METI, Japan and its partner nations would sell or buy oil from their reserves in times of crisis, such as when oil prices jump sharply, or amid a natural disaster or war.

METI chief Akira Amari, who is currently visiting Singapore, will meet with New Zealand Associate Minister of Energy Harry Duynhoven to discuss the issue. They are expected to issue a joint statement declaring the start of bilateral talks for an accord on oil sharing.

Asia Pulse Pte Ltd.