The Department of Energy (DOE) and Japan’s Ministry of Economy, Trade and Industry (METI) have agreed to deepen cooperation on establishing a strategic petroleum reserve program in the Philippines and advancing joint oil stockpiling initiatives across ASEAN.

The agreement was formalized through a joint statement issued on May 28 following the meeting between President Ferdinand R. Marcos Jr. and Japanese Prime Minister Sanae Takaichi in Tokyo.

According to the joint statement, both governments share a vision of strengthening energy security and supply chain resilience amid current geopolitical uncertainties.

The cooperation will be carried out under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia) framework.

A key component of the partnership is support for the Philippines’ planned strategic petroleum reserve program, which includes the development of new oil stockpiling facilities.

Japan said it will assist through feasibility studies, technical capacity building, and expertise in developing a national stockpiling system. The initiative will involve organizations such as the Economic Research Institute for ASEAN and East Asia (ERIA), the Japan Organization for Metals and Energy Security (JOGMEC), and the Japan Bank for International Cooperation (JBIC), alongside Japanese trading and engineering companies.

Both sides will also explore the possibility of Japanese government institutions and private firms participating in engineering, procurement, and construction (EPC) activities as well as financing for future stockpiling projects.

Beyond the Philippines, the two governments said they will work toward establishing an ASEAN-wide joint stockpiling system to strengthen regional energy security.

As an initial step, ERIA will develop a roadmap covering financing and other implementation considerations, which is expected to be announced during the ASEAN Summit and the Asia Zero Emission Community (AZEC) Summit.

Japan also said it intends to engage oil-producing countries, including those in the Middle East, to support the initiative while helping strengthen ASEAN’s regional energy security institutions.

The joint statement said the collaboration builds on the long-standing relationship between the Philippines and Japan and reflects a shared commitment to strengthening energy resilience amid evolving global supply risks.

“Building upon a long-standing bilateral relationship, METI and the DOE seek further collaborative action and tangible results, reflecting a shared vision for a secure, sustainable, and prosperous energy future for both nations and the Asian region,” the statement said.

The initiative marks one of the most significant steps yet toward the establishment of a Philippine strategic petroleum reserve system, while also advancing broader regional cooperation on emergency fuel stockpiling and energy security.

As energy supply risks continue evolving globally, could strategic petroleum reserves become a more important pillar of energy security across Southeast Asia?

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