ASEAN Oil Stockpiling Scheme: 2027 Launch Plan

The Association of Southeast Asian Nations (ASEAN) is preparing a regional oil product stockpiling scheme that could begin operating as early as 2027, with Indonesia and Thailand expected to host storage facilities under an arrangement designed to improve fuel availability during supply emergencies.

The initial phase is expected to allow the Philippines to purchase diesel and petrol stored by companies in the two countries when disruptions affect its domestic fuel supplies, according to a Reuters report citing Japan’s Nikkei business daily on 12 November 2026.

Companies affiliated with the Philippine National Oil Company (PNOC) are expected to sign letters of intent with storage operators in Indonesia and Thailand on 14 November. The proposed arrangement would introduce a commercial mechanism through which participating countries or companies pay an upfront fee to secure the right to purchase specified volumes of stored petroleum products during emergencies.

The initiative is being led by the Economic Research Institute for ASEAN and East Asia (ERIA), with Japan supporting efforts to strengthen regional energy security following disruptions associated with the Iran war.

The proposal could eventually be extended to additional ASEAN members and include crude oil alongside refined petroleum products.

How ASEAN’s joint oil stockpiling scheme will work

The proposed arrangement will use a system commonly known as oil stockholding tickets.

Under this model, participating countries or companies pay an upfront fee to reserve the right to purchase an agreed quantity of fuel held in storage by commercial operators in another country.

Unlike a conventional national strategic reserve, the arrangement does not necessarily require each participating government to purchase and maintain all the fuel itself.

Instead, it provides contractual access to existing commercial inventories during an emergency, subject to the agreed terms and availability of the reserved products.

The system is already used in the European Union, according to Nikkei’s report cited by Reuters.

For ASEAN, the proposed mechanism could provide an additional layer of protection against disruptions affecting international oil transportation routes, refinery operations and regional fuel distribution.

The initial arrangement is expected to focus on diesel and gasoline, with Indonesia and Thailand serving as the principal storage locations.

Philippines to become the initial buyer of emergency fuel supplies

The Philippines is expected to be the first participating buyer under the proposed arrangement.

The country’s access to fuel stored in Indonesia and Thailand would provide an additional procurement option during emergencies, particularly if international supply disruptions restrict normal imports.

PNOC-affiliated companies are expected to establish the initial commercial arrangements with tank operators in the two host countries.

This structure could create opportunities for petroleum storage operators, fuel suppliers and trading companies involved in cross-border oil distribution.

For the Philippines, the initiative would complement domestic energy security measures by providing access to inventories held outside its borders.

Japan has also been supporting the Philippines in strengthening its oil security framework. In October 2026, the Japan International Cooperation Agency and the Philippine Department of Energy signed a joint statement to promote cooperation on oil security. JICA+1

Indonesia and Thailand emerge as regional oil storage locations

Indonesia and Thailand are expected to provide the initial infrastructure for the ASEAN stockpiling arrangement.

Their participation places existing petroleum storage and commercial supply infrastructure at the centre of the proposed regional mechanism.

The involvement of commercial tank operators is particularly important because the scheme is designed around contractual access to stored fuel rather than the creation of a single centrally managed regional reserve.

ERIA has already been working with private-sector stakeholders to develop a commercially viable model for regional stockpiling.

In September 2026, ERIA and the Indonesian Business Council established a private-sector working group to explore the proposed pilot project. Discussions included participation from companies and specialists in energy, logistics, infrastructure, engineering and finance. eria.org

ERIA also held discussions with Shell Thailand in September about the potential use of existing storage infrastructure, product sourcing and commercial arrangements. eria.org

These engagements indicate that private-sector participation is expected to be an important component of the initiative.

Laos and Timor-Leste consider participation as the scheme expands

The proposed stockpiling arrangement could eventually involve more countries across Southeast Asia.

According to the Nikkei report cited by Reuters, Laos and Timor-Leste are also considering participation.

The longer-term proposal could extend the system across ASEAN and expand its coverage beyond refined petroleum products to include crude oil.

However, the initial phase is focused on enabling the Philippines to access diesel and gasoline held in Indonesia and Thailand.

The potential expansion would depend on further agreements between participating governments, national oil companies and commercial storage operators.

A broader regional arrangement could provide additional flexibility in managing fuel shortages, although its effectiveness would depend on storage capacity, contractual commitments, transportation infrastructure and coordination during emergencies.

Japan backs regional oil security following supply disruptions

Japan is promoting the initiative as part of wider efforts to strengthen energy security across Asia.

The disruptions associated with the Iran war have highlighted the vulnerability of economies that depend on imported oil and internationally connected supply routes.

Japan is expected to announce cooperation on joint oil stockpiling at the Asia Zero Emission Community summit in Manila on 17 November, according to the Reuters report.

The proposed initiative also builds on earlier regional cooperation between Japan and the Philippines.

In April 2026, ERIA called for stronger oil and gas stockpiling systems across ASEAN, identifying limited storage capacity and dependence on imported energy as vulnerabilities for several member countries.

The International Energy Agency has also reported that Indonesia, Malaysia, the Philippines and Thailand are considering stronger emergency stockholding arrangements. IEA

What the ASEAN oil stockpiling plan means for energy companies

The proposed scheme could create business opportunities across several segments of the petroleum supply chain.

Oil storage companies in Indonesia and Thailand could become important infrastructure providers under the initial arrangement. Fuel suppliers and traders could also participate through product procurement, storage agreements and cross-border commercial transactions.

Logistics providers may play a supporting role in moving petroleum products from storage locations to importing markets during supply emergencies.

For national oil companies, the ticket-based model offers a mechanism to secure access to fuel without relying entirely on domestically maintained inventories.

However, the commercial value of the arrangement will depend on how much fuel is committed, the duration of storage agreements, pricing conditions and the availability of transportation during an emergency.

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