Tokyo, Nov. 14 (Jiji Press)–Japan and the Philippines are expected to sign a memorandum of understanding on strengthening cooperation on oil stockpiling in the Southeast Asian country, Jiji Press learned Saturday. Under the partnership, Japan’s public and private sectors will help the Philippines develop a national oil reserve system as part of measures to enhance its energy security. The MOU is set to be signed early next week by Japanese industry minister Ryosei Akazawa and a Philippine official ahead of a summit of the Asia Zero Emission Community framework in Manila on Tuesday. The Philippines declared a state of national energy emergency in March amid growing turmoil in the Middle East and has since been working to bolster the resilience of its oil supply. The memorandum will cover a joint study on cooperating with oil-producing countries such as Saudi Arabia and the United Arab Emirates as well as the development of systems needed to establish a national oil reserve scheme. Meanwhile, Japanese engineering firm Chiyoda Corp. is expected to sign an MOU with Philippine National Oil Co. soon on technological assistance for oil reserve facilities. Japan’s Partnership on Wide Energy and Resources Resilience Asia, or POWERR Asia, a framework announced in April to provide about 10 billion dollars in financial aid to Asian countries for enhancing their energy supply networks, is seen as a possible source of funding for the measures. Like Japan, the Philippines depends on the Middle East for more than 90 pct of its crude oil imports. As of May 3, the country held reserves of oil equivalent to only 53 days of domestic consumption, far below Japan’s public- and private-sector reserves capable of covering 207 days. Having experienced fuel shortages and supply confusion following the de facto closure of the Strait of Hormuz, a key oil transport waterway in the Middle East, the Philippines is working to establish a national oil reserve system while raising stockpiles at its private sector. The country plans to construct storage tanks for national reserves for completion in 2027 and later, aiming to eventually increase its oil reserves by 15 million barrels, equivalent to 30 days of consumption. END [Copyright The Jiji Press, Ltd.]
