Representatives of ASEAN member states and their plus-three dialogue partners discussed on Monday in Vientiane Capital the ASEAN Oil Stockpiling Road Map (OSRM) and ASEAN Energy Security Strategy in an effort to address possible energy shortages in times of emergency among member states.

The 4th workshop of the ASEAN +3 OSRM was hosted by the Energy Policy and Planning Department, Ministry of Energy and Mines in cooperation with the Ministry of Economy, Trade and Industry and the Institute of Energy Economics of Japan.

“We hope that the workshop will bring us a better understanding of the needs and benefits of developing an oil stockpile, as well as major issues to be considered while building stockpiles in each country,” said Mr Davong Phonekeo, Director General, Energy Policy and Planning Department.

A study conducted by the Japanese Institute of Energy Economics suggested that oil demand in ASEAN countries has been rapidly growing over the last decades as domestic oil production has been either stagnant or shrinking in most ASEAN countries.  The growth of demand for oil has obviously resulted in an increase of oil imports and has made ASEAN countries especially at risk of external supply disruptions or volatile international oil prices.

Mr Davong told the workshop that ASEAN recognized the necessity of oil stockpiling initiatives in the light of persistent risks to supply disruptions and highly volatile oil markets in future.

While development and economic growth in countries in the region have increased at a fairly consistent pace, the Lao PDR has imported over 1.01 billion liters of fuel over the last two years with around 80 per cent coming from Thailand and the rest from Vietnam.

ASEAN countries are urged to continue studying and developing the roadmap while collecting information annually on the progress of each country’s oil stockpiling activities.  They have also been encouraged to organize workshops on the roadmap with the support and assistance of ASEAN +3 countries.

Source:
courtesy of KPL NEWS AGENCY

by Manythone

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