Japan Announces $10 Billion Support for Asia's Energy Supply Chain, Equivalent to 1.2 Billion Barrels of Crude Oil

TOKYO (CNA) -- Amid concerns over stable crude oil supply, Japanese Prime Minister Sanae Takaichi announced today at the "Asia Net Zero Emission Community" (AZEC) meeting that Japan will provide financial support totaling approximately $10 billion (about 1.6 trillion yen, 310 billion New Taiwan dollars) to help maintain the supply of oil and related materials in the Asian region.

TBS and Sankei Shimbun reported that the AZEC leaders' meeting, which discussed Asian energy issues, was held online this afternoon.

Takaichi stated at the meeting, "I announce the promotion of the 'Asia Energy Resource Supply Capacity Enhancement Partnership,' commonly known as Power Asia, which aims to strengthen regional supply chains. This plan will provide financial support totaling approximately $10 billion."

After the meeting, Takaichi explained to the media at the Prime Minister's Office that the funds will be used to support Asian countries in procuring crude oil and petroleum products, maintaining supply chain operations, establishing energy reserve systems, and securing related minerals.

She explained that, when converted to crude oil and petroleum product procurement volume, the support scale amounts to approximately 1.2 billion barrels of crude oil, equivalent to one year's crude oil imports by the Association of Southeast Asian Nations (ASEAN).

Japan relies heavily on imports from Asia for many key petroleum-derived materials, including medical gloves. In the event of a substantial obstruction in the Strait of Hormuz, Japan hopes to use this financial support to help Asian countries smoothly procure crude oil, thereby ensuring the stability of domestic supplies in Japan.

Takaichi stated that insufficient fuel supply or stagnation of supply chains in Asia would affect Japan's access to medical supplies and have a significant negative impact on its economy and society. She emphasized, "Supporting Asian supply chains also strengthens Japan's economic foundation." (Editor: Chen Chenggong) 1150415

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