Jakarta (VNA) – Amid persistent volatility in global energy markets, the Economic Research Institute for ASEAN and East Asia (ERIA) believes Southeast Asian countries should strengthen cooperation and gradually establish a common oil stockpiling mechanism and coordinated emergency response arrangements to minimise the impact of supply disruptions.
These were among the key issues discussed at a seminar on ASEAN energy security and green growth organised by ERIA in Jakarta, Indonesia, on November 6.
ERIA CEO Takayuki Yamanaka stressed at the event that recent fluctuations in global energy markets highlighted the need for ASEAN member states to improve preparedness and cooperation. He said ERIA’s research focuses on the feasibility of establishing a joint strategic oil reserve mechanism and ways for countries to coordinate their responses when regional supplies are disrupted.
ERIA’s research suggests that ASEAN could combine three forms of reserves: national reserves, stockpiles held under a quota-based arrangement and joint reserves shared among countries.
A cooperation model providing for around 30 days of shared reserves could save about 610 million USD annually compared with an approach relying mainly on national stockpiles. An efficiently managed reserve system could also limit economic losses caused by supply disruptions, generating estimated benefits of around 8.6 billion USD annually for the region as a whole.
Speaking to the Vietnam News Agency, Dr Han Phoumin, a senior energy economist at ERIA, said stockpiling cooperation will enable ASEAN to strengthen energy security while optimising costs through resource sharing.
At present, energy reserves in the region are held mainly by businesses to support their operations. He said countries should therefore consider supplementing these with national reserves, quota-based stockpiles and joint reserves, enabling them to support one another when supply disruptions occur.
From the energy industry's perspective, Indonesian energy and oil and gas expert Konsep Harum said ASEAN's resilience should be built on four pillars - maintaining domestic supply; diversifying import sources and transport routes; strengthening oil and gas reception, processing and distribution capacity; and improving reserves and emergency response mechanisms.
He also noted that underinvestment in energy supplies and infrastructure remained a structural challenge for the region.
In addition to energy security, the seminar devoted a session to the role of green growth and digital transformation in strengthening ASEAN’s competitiveness and economic integration./.
VNA
