Canberra: Japanese Prime Minister Sanae Takaichi stated that the global oil supply shortage is having a massive impact on the Asia-Pacific region and announced increased cooperation with Australia to strengthen energy security.
According to Thai News Agency, Japanese Prime Minister Sanae Takaichi, currently on an official visit to Australia, revealed during a meeting with Australian Prime Minister Anthony Albanese in Canberra that the global oil supply shortage is affecting the Asia-Pacific region. The restrictions on shipping through the Strait of Hormuz due to the conflict between Iran, the United States, and Israel are impacting the region, as over 80% of the oil traveling through this route is destined for Asia. The Japanese government is taking additional measures, including preparing a second release of approximately 20 days' worth of strategic oil reserves to stabilize the domestic market. They also aim to source 60% of their crude oil by bypassing the Strait of Hormuz by shifting imports to the United States, Azerbaijan, and other Asia-Pacific countries.
Prime Minister Takaichi also announced a 1.5 trillion yen (approximately 311 billion baht) cooperation framework to help Southeast Asian countries, or ASEAN, procure oil and build oil storage facilities to prevent disruptions to the supply chain that could affect Japan's industry.
In terms of cooperation with Australia, the two countries signed a "Joint Declaration on Economic Security Cooperation" to strengthen the resilience of supply chains for key commodities such as energy, food, and vital minerals. They also agreed to communicate closely to build resilience in the energy supply chain, with Australia being a major supplier of liquefied natural gas (LNG) and coal to Japan. Albanese pledged to remain a reliable partner amidst the crisis. Conversely, Australia faces refinery shortages and therefore relies on Japan for imports of refined products such as jet fuel and diesel.
Prime Minister Takaichi's visit to Australia also coincides with the half-century anniversary of the Basic Treaty of Friendship and Cooperation between Japan and Australia, further strengthening security ties. Last year, the two sides signed a US$6 billion agreement for Japan to supply the Australian Navy with Mogami-class stealth frigates, marking Japan's largest arms export since the easing of arms export restrictions in 2014.