Finance
Japan Plans $10 Billion Framework to Help Asia Secure Oil
Published by Global Banking & Finance Review®
Posted on April 15, 2026
3 min readLast updated: April 15, 2026
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Japan will set up a $10 billion financing framework via JBIC and NEXI to help Asian countries secure oil amid Middle East tensions, aiming to support about 1.2 billion barrels—or around a year’s ASEAN crude imports.
Japan offers $10 billion support to help Asian neighbours secure oil
Japan's Financial Framework to Stabilize Asian Energy Supplies
By Makiko Yamazaki and Chang-Ran Kim
Overview of the $10 Billion Support Plan
TOKYO, April 15 (Reuters) - Japan said on Wednesday it would establish a financial framework worth about $10 billion to help Asian countries procure energy resources and bolster their stockpiles as Middle East tensions drive prices higher and disrupt supply chains.
The support, aimed at preventing knock-on effects on Japan's own supply chains, would be channelled mainly through state-backed financial institutions such as Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Announcement and International Collaboration
Announcing the plan, Prime Minister Sanae Takaichi said the support would be equivalent to as much as 1.2 billion barrels of oil, or about one year's worth of crude oil imports by the Association of Southeast Asian Nations (ASEAN). She was speaking after a meeting of the "AZEC Plus" under the Japan-led initiative, Asia Zero-Emission Community (AZEC).
Leaders of the Philippines, Malaysia, Singapore, Thailand and Vietnam attended the meeting, among others.
Japan's Strategic Interests and Mutual Dependence
"We are closely interconnected with Asian countries through supply chains and other channels, and we are mutually dependent,” Takaichi told reporters after the talks, citing examples such as dialysis equipment and surgical drains.
"Supporting Asian countries' supply chains would in turn bolster Japan’s own economy."
Details of the Support Measures
The plan includes credit provision for local companies to procure alternative resources such as U.S. crude oil, as well as financing and loans for companies and governments that are part of Japan's supply chain.
Support to help diversify energy sources and boost partner countries' stockpiles through storage tank construction is also included.
Challenges Facing Southeast Asian Countries
Compared with Japan, Southeast Asian countries hold smaller oil stockpiles, leaving supplies of crude and petroleum products such as naphtha – a key feedstock for plastics – increasingly tight. A disruption in Southeast Asian production has fuelled anxiety among Japanese healthcare providers that rely on Asia for critical supplies such as containers, tubes and gloves.
About 90% of crude oil passing through the Strait of Hormuz is destined for Asia, according to Japan's Agency for Natural Resources and Energy.
Japan's Domestic Oil Security Measures
Tokyo has said it has secured some four months' worth of naphtha for domestic use, but a growing number of manufacturers have flagged a disruption to deliveries in recent days. The government also said on Wednesday it plans to release another 36 million barrels from its national oil reserves from early May.
Responses and Future Outlook
Asked whether countries had requested access to Japan's oil reserves following the AZEC Plus meeting, Takaichi declined to comment but stressed the agreement did not involve a release of its stockpile and would not affect domestic supply.
(Reporting by Makiko Yamazaki and Chang-Ran Kim, additional reporting by Tamiyuki Kihara; Editing by Kim Coghill)
Key Takeaways
- •Japan’s new $10 billion framework will be channelled through state-backed institutions JBIC and NEXI to support partner countries in securing oil amid heightened Middle East tensions. (apnews.com)
- •The assistance equates to about 1.2 billion barrels—roughly one year’s worth of crude imports for ASEAN—which face tighter supply due to Southeast Asia’s relatively low oil reserves. (apnews.com)
- •Southeast Asian countries typically maintain between 20 to 90 days of oil reserves versus Japan’s 200–250 days, highlighting the region’s vulnerability and the strategic rationale behind Japan’s support. (carnegieendowment.org)
References
Frequently Asked Questions about Japan plans $10 billion framework to help Asia secure oil
1What is Japan's new financial framework for Asia's oil security?
Japan plans to establish a $10 billion financial framework to help Asian countries secure vital energy resources, especially oil, amidst growing global competition.
2Which institutions will channel the $10 billion support?
The funds will be mainly distributed through state-backed institutions such as Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
3How does the plan relate to ASEAN's oil imports?
Japan's support is equivalent to about 1.2 billion barrels of oil, roughly matching ASEAN's total annual crude oil imports.
4Why is Southeast Asia particularly vulnerable to oil supply disruptions?
Southeast Asian countries have smaller oil stockpiles compared to Japan, making them more exposed to disruptions in crude and petroleum product supplies.
5What are the risks for Japanese industries if oil supplies are disrupted?
Disruptions in Southeast Asian oil production can affect Japanese healthcare providers that depend on critical supplies sourced from Asia.
