Asia pivots to regional oil and gas storage after Strait of Hormuz crisis

September 3, 2026 at 09:26 AM1 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Asian governments are investing in regional oil and gas storage and strategic reserves after the Strait of Hormuz crisis cut Gulf energy shipments. Japan announced a $10bn initiative to help Southeast Asian nations build stockpiles, while the Philippines advanced a bill for a 60-day government reserve.

Key Facts

Japan announced the $10bn POWERR Asia initiative in April to help Southeast Asian economies procure oil and build strategic stockpiles.
Vietnam held only five to seven days of oil in national reserves at the outbreak of the Iran war in late February, with commercial inventories extending supplies up to 65 days.
Thailand held about 61 days of oil reserves in early March, above its 25-day mandated minimum but below the International Energy Agency's 90-day benchmark.
A Philippine parliamentary panel approved a bill last month to create a 60-day government-held oil reserve.

Regional Storage Push

Asian countries imposed fuel conservation measures such as price caps and alternate driving days as oil and gas prices surged after the Strait of Hormuz crisis. Japan's POWERR Asia initiative aims to help Southeast Asian economies procure oil and petroleum products and build strategic stockpiles in the long term. The Philippines advanced a bill to create a 60-day government-held reserve, while Thailand and Vietnam also moved to strengthen their strategic reserves.

Reserve Levels and Gaps

Vietnam's national oil reserves covered only five to seven days of consumption at the war's outbreak, though commercial inventories extended supplies for up to 65 days. Thailand held about 61 days of reserves across public and private sectors in early March, above its 25-day mandated minimum. The Philippines was estimated to have 50-60 days of supplies in private commercial inventories. All three countries' reserve levels fell below the International Energy Agency's 90-day minimum benchmark.