Asian Nations Pursue Strategic Oil and Gas Stockpiles Following Strait of Hormuz Crisis

Asian governments are overhauling energy security strategies by expanding domestic stockpiles and investing in strategic fuel infrastructure following major maritime disruptions in the Strait of Hormuz. Six months after armed conflict between the United States, Israel, and Iran drastically reduced Middle Eastern petroleum shipments, regional economies are acting to insulate themselves from transit bottlenecks.

Southeast Asia Seeks State-Held Reserves

During the initial period of supply restrictions, several Asian nations introduced emergency energy conservation measures, including fuel price ceilings, alternate-day driving rules, and mandatory remote work for civil servants. Attention has since shifted toward permanent infrastructure solutions. In April 2026, Japanese Prime Minister Sanae Takaichi announced the $10 billion POWERR Asia initiative to assist Southeast Asian countries with petroleum procurement and long-term stockpile development.

At the outbreak of the war in late February, Vietnam held only five to seven days’ worth of oil in national reserves, though commercial inventories extended total supplies up to 65 days. Thailand held roughly 61 days of public and private reserves against a 25-day mandatory minimum in early March, while private commercial inventories in the Philippines were estimated at 50 to 60 days. All figures remained short of the 90-day minimum benchmark recommended by the International Energy Agency.

In response, regional governments are advancing legislation and development plans. Last month, a parliamentary panel in the Philippines approved a bill establishing a 60-day government reserve. Thai authorities are proceeding with plans for cross-peninsula pipelines and storage facilities. Ben Kiatkwankul of Maverick Consulting Group noted that these developments are “positioning Thailand against Singapore for Gulf crude storage.”

South Asian and East Asian Stockpiles Expand

Major Asian economies are also expanding direct storage arrangements with Gulf suppliers. The Abu Dhabi National Oil Company already maintains crude stockpiles in Singapore, India, South Korea, and Japan, while Saudi Arabia and Kuwait hold reserves in South Korea and Japan. According to the Observer Research Foundation, Abu Dhabi’s state firm aims to expand its Indian crude storage capacity to 30 million barrels. India is also evaluating a proposal to place strategic reserves at Fujairah, a port in the United Arab Emirates located outside the Strait of Hormuz.

India, which held about 74 days of oil stocks as of May—with over 90 percent held by state-owned firms according to S&P Global—announced expansion steps in July. State-owned Oil and Natural Gas Corporation announced plans for a 13-million-barrel reserve in southern India, alongside separate plans to add 6.5 million metric tonnes to existing stockpiles. Meanwhile, South Korean media reported that Seoul is considering adding 30 to 40 million barrels to its existing 146-million-barrel reserve, raising a previously planned 20-million-barrel expansion.

Pipeline and Infrastructure Investments Accelerate

In China, the world’s second-largest oil consumer, the Hormuz disruption has reinforced policy directives regarding domestic energy infrastructure. Beijing’s 15th Five-Year Plan covering 2026 to 2030 outlines measures for expanded liquefied natural gas storage, domestic pipelines, and offshore drilling. State-owned operator PipeChina announced in May that it was accelerating work on nearly 40 projects, including 9,000 kilometers of domestic pipelines.

Analyzing the policy environment, David Fishman of the Lantau Group said the transit crisis “underlines for policymakers that this line of thinking is clearly correct” regarding energy risk. Commenting on the broader trend, Parul Bakshi from the Oxford Institute for Energy Studies observed that the crisis is generating “infrastructure that bypasses geopolitical risk, and infrastructure that eliminates exposure to imported fuel altogether.”

Background

The Strait of Hormuz is one of the world’s most vital energy corridors, connecting Gulf crude and gas producers to major international import markets, particularly in Asia. A conflict involving Iran, Israel, and the United States, marked by Iranian attacks on vessels and a U.S. naval blockade, effectively halted standard commercial shipping through the narrow waterway six months ago, triggering global energy price spikes and forcing consumer nations to rely on existing emergency stocks.