Japan’s first female Prime Minister Sanae Takaichi has visited India for the first time. During this period, many important agreements have been signed between the two countries. India and Japan have decided to increase mutual cooperation to strengthen energy security. Both countries have agreed to ensure secure, affordable and uninterrupted supply of oil and gas amid the current geopolitical challenges and increasing uncertainties in the global energy market. The objective of this cooperation is to secure the long-term energy needs of both the countries and reduce supply-related risks.
Will share experience in strategic oil storage
Both countries will share each other’s experiences in the field of Strategic Oil Reserves. Under this, cooperation will be increased for storage of crude oil and petroleum products, stock management and ensuring availability of oil in emergency situations. Its objective is to keep the domestic market stable in case of any global crisis or supply disruption.
Will advocate for the interests of energy importing countries
India and Japan will also work together to strengthen the voice of oil and gas importing countries at the global level. Both countries will share important information related to the energy market and will explore new sources of energy supply from third countries. Apart from this, possibilities of joint investment in oil and gas projects in other countries will also be considered, so that energy supply options can be expanded.
Focus will be on maritime transport and investment
A large part of the energy supply is through sea routes. In view of this, India and Japan will increase cooperation to make maritime transportation of oil and gas more safe, reliable and robust. Besides, possibilities of joint investment in infrastructure and projects related to energy transportation will also be explored.
Institutional cooperation will get a boost
Under this partnership, India’s Indian Strategic Petroleum Reserves Limited (ISPRL) and national oil companies will increase technical, financial and strategic cooperation with institutions like Japan’s JOGMEC and JBIC. This is expected to promote modern technology and investment in the energy sector between the two countries.
Joint working group will review progress
Regular meetings will be organized between India and Japan under the India-Japan Joint Working Group on Petroleum and Natural Gas. In these meetings, ongoing projects in the energy sector will be reviewed and new opportunities for future cooperation will be discussed.
Both countries believe that energy security will be strengthened through oil storage, energy supply, maritime transportation, investment in third countries and institutional cooperation. This partnership is considered important not only for India and Japan but also for regional energy stability.
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