Asia builds oil and gas storage to cut Strait of Hormuz risk

Asian economies are rapidly expanding oil and gas storage capacity to reduce vulnerability to Middle East conflicts, following severe economic disruption from the US-Israel-Iran war six months ago that crippled Strait of Hormuz shipping. Japan launched the $10bn POWERR Asia initiative to help Southeast Asian nations build strategic stockpiles, while Vietnam, Thailand, and the Philippines held reserves well below the IEA's 90-day benchmark. India is expanding reserves, and Japan, South Korea, and Singapore are pursuing storage deals with Gulf suppliers. China's latest five-year plan includes expanded pipelines and LNG storage, with state-owned PipeChina accelerating construction on 9,000 kilometres of domestic pipeline. Experts say the crisis has reinforced regional investment in bypassing geopolitical risks and reducing reliance on imported fuel.