ASEAN targets 30% renewables by 2025, Philippines to create oil reserve by 2027
by@Reuters
Summary
Asian countries are rapidly increasing their oil stockpiling capabilities and advancing renewable energy initiatives in response to the supply risks highlighted by the ongoing Iran war. With Southeast Asia previously receiving 80% of the oil shipped through the Strait of Hormuz, the region, now led by the Philippines, plans to establish a national oil reserve by the end of 2027 and aims for regional cooperation on stockpiling. Concurrently, ASEAN members are targeting a 30% share of renewables in primary energy and 45% in installed capacity. As part of this effort, Japan is collaborating with regional partners to boost oil reserves and strengthen energy security amid the geopolitical tensions affecting supply routes.
Analysis
ASEAN: ASEAN is the Association of Southeast Asian Nations, a regional intergovernmental organization comprising Southeast Asian countries. Its members have issued joint statements on voluntary oil stockpiling systems, pledged to raise renewables shares in primary energy supply and installed capacity, and advanced an enhanced agreement on a long-delayed regional power grid. Japan: Japan is a major East Asian economy that leads the Asia Zero Emission Community (AZEC). It has developed action plans with regional partners and held discussions with Middle Eastern suppliers to strengthen crude oil reserves across Asia following the Iran war. Takagi Kei: Takagi Kei is Japan's State Minister of Economy, Trade and Industry. He reported on bilateral and multilateral agreements reached with Asian partners and Middle Eastern suppliers to enhance regional crude oil reserves as part of post-Iran war energy security measures. Philippines: The Philippines is a Southeast Asian archipelago nation currently serving as chair of ASEAN. It imports nearly all its oil and fuel and is establishing a national reserve by the end of 2027, with provisions for potential regional use where the host country would retain priority access during emergencies. Saudi Arabia: Saudi Arabia is a leading global oil producer in the Middle East. It has expressed willingness to cooperate with Asian countries on expanding oil stockpiling capacity in response to supply risks exposed by the Iran war. Sharon Garin: Sharon Garin serves as energy secretary of the Philippines. She outlined plans for a national oil reserve by the end of 2027 and emphasized the country's intent to secure priority access to any stored stocks in emergencies while facilitating potential regional stockpiling arrangements. United Arab Emirates: The United Arab Emirates is a key oil-exporting nation in the Middle East. Alongside Saudi Arabia, it has signaled readiness to support efforts by Asian partners to build greater oil reserve capacity amid the Iran conflict. Energy Security: Asian countries are accelerating oil stockpiling initiatives, including national reserves and voluntary regional joint systems, following supply disruptions from the Iran war. Renewable Acceleration: Southeast Asian nations are advancing clean energy targets and a regional power grid to reduce reliance on vulnerable oil supply routes amid geopolitical tensions. Middle East Cooperation: Key Gulf producers have signaled support for expanding Asian oil storage capacity through direct discussions with regional governments.
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