ASEAN countries will launch a joint oil product stockpiling scheme as early as 2027, with storage sites planned in Indonesia and Thailand, so member states can share fuel supplies during emergencies, the Nikkei business daily reported on Thursday.

Under the initial plan, the Philippines would be able to buy diesel and gasoline stored in Indonesia and Thailand when supplies are disrupted. Companies affiliated with Philippine state oil firm PNOC are expected to sign letters of intent with tank operators in the two countries on Saturday, according to the report.

How the ticket system would work

The scheme will introduce a ticket system, under which participating countries or companies pay a fee upfront for the right to buy a certain volume of oil products stored by another country's companies during an emergency. The system is already used in the European Union, Nikkei said.

The initiative is led by the Economic Research Institute for ASEAN and East Asia, known as ERIA, an international think tank established in Indonesia by Japan's Ministry of Economy, Trade and Industry. Laos and Timor-Leste are also considering joining, while the scheme could eventually be expanded across ASEAN and to crude oil, the report said.

Japan is promoting the scheme to strengthen regional energy security after disruptions caused by the Iran war. Prime Minister Sanae Takaichi is expected to announce cooperation on joint oil stockpiling at an Asia Zero Emission Community summit in Manila on 17 November.

Months of groundwork behind the plan

The proposal has been building for months. Philippine President Ferdinand Marcos Jr. pushed for a regional study on joint oil stockpiling, and at least five ASEAN members, Indonesia, Singapore, Malaysia, Thailand and Vietnam, have expressed strong interest in joining, Philippine Trade Secretary Cristina Roque said in September.

ERIA held a regional validation workshop in Jakarta in August as part of efforts to refine an ASEAN oil stockpiling strategy, and its study was expected to be completed by November. The framework under discussion would allow members to participate voluntarily, based on their national circumstances and readiness, with the option of a small-scale pilot to test the arrangement before wider implementation.

The initiative is being developed alongside existing ASEAN energy-security mechanisms, particularly the ASEAN Petroleum Security Agreement, and is designed to give participating countries an additional regional buffer that could be tapped during an oil supply crisis.

Why the region wants a shared buffer

Southeast Asia's dependence on imported oil has grown steadily. The International Energy Agency has put ASEAN's oil import dependency at about 66 per cent in 2024, up from about 57 per cent in 2010, leaving the region exposed when shipping routes or supplies are disrupted.

That exposure has sharpened during the conflict in the Middle East, which has pushed up petroleum prices and raised fears of supply interruptions. A shared stockpile would let countries that lack storage capacity of their own draw on reserves held elsewhere in the region, rather than competing with each other for scarce cargoes in a crisis.

Important details still have to be settled, including storage volumes, financing, governance and the rules for releasing stocks. But the reported timetable, with letters of intent due within days and a launch targeted for 2027, suggests the plan is moving from study to implementation, with the Philippines first in line to benefit.