Japan announced that it reached a joint deal for oil storage with Kuwait Petroleum Corporation (KPC), Reuters reported.
According to the deal, KPC can use a capacity of 3.14 million barrels for free. In return, Japan will get a priority claim on the stockpiles in case of emergencies as well as other Asian countries, mainly ASEAN nations.
The volume of is equivalent to 1.5 days of consumption.
Under the deal, KPC can use storage tanks at refiner Eneos’ Kiire base in southern Japan of Kagoshima as an export base for eastern Asia.
Japan had conducted such agreements with ADNOC company and Aramco company aiming at boosting its energy security, an anonymous official source told Reuters.