Asia looks to store oil, gas closer to home after Strait of Hormuz crisis

What Happened

Asian economies are accelerating efforts to expand domestic oil and gas storage capacity following the disruption of energy transit through the Strait of Hormuz. Shipping through the strait has been severely restricted by Iranian attacks and a United States naval blockade since the outbreak of conflict between Iran, the United States, and Israel in late February. In response, nations including Japan, India, South Korea, and the Philippines are increasing strategic reserves and infrastructure to mitigate reliance on vulnerable maritime supply chains.

Key Actors

Why It Matters

The conflict has exposed the vulnerability of Asian economies to chokepoints in the Middle East, prompting a strategic shift toward energy self-sufficiency and decentralized storage. This transition is reshaping regional infrastructure investment, with nations prioritizing domestic pipelines and tank farms to bypass the geopolitical risks associated with the Strait of Hormuz.

Watch For

Monitor the implementation of the Philippines' proposed 60-day government-held reserve bill and the progress of South Korea's potential expansion of its oil reserves by 30-40 million barrels. Additionally, observe the development of the 15th Five-Year Plan in China, which includes provisions for expanded deep-water drilling and pipeline construction through 2030.