Search

 

Cablegate: Japan, New Zealand Sign Strategic Oil Reserve Pact

VZCZCXRO2524
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #5197 3130805
ZNR UUUUU ZZH
P 090805Z NOV 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9439
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 0063
RUEHBY/AMEMBASSY CANBERRA PRIORITY 2434
RUEHLO/AMEMBASSY LONDON PRIORITY 1886
RUEHFR/AMEMBASSY PARIS PRIORITY 5838
RUEHRH/AMEMBASSY RIYADH PRIORITY 0553
RUEHUL/AMEMBASSY SEOUL PRIORITY 6119
RUEHTC/AMEMBASSY THE HAGUE PRIORITY 1065
RUEHWL/AMEMBASSY WELLINGTON PRIORITY 1011
RUEHFK/AMCONSUL FUKUOKA PRIORITY 4338
RUEHHK/AMCONSUL HONG KONG PRIORITY 6363
RUEHNAG/AMCONSUL NAGOYA PRIORITY 3144
RUEHNH/AMCONSUL NAHA PRIORITY 6743
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 8005
RUEHKSO/AMCONSUL SAPPORO PRIORITY 5008
RUEHBS/USEU BRUSSELS PRIORITY
RUEHIN/AIT TAIPEI PRIORITY 6754
RUEHGV/USMISSION GENEVA PRIORITY 3179
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 6900

UNCLAS TOKYO 005197

SIPDIS

SIPDIS

PARIS FOR OECD

E.O. 12958: N/A
TAGS: ECON ENRG JA PGOV PREL
SUBJECT: JAPAN, NEW ZEALAND SIGN STRATEGIC OIL RESERVE PACT


1. (U) Japan and New Zealand signed a pact November 5 which
allows New Zealand access to Japan's strategic oil reserves
for emergency use according to the Ministry of Economy, Trade
and Industry (METI). Under the agreement, New Zealand may
purchase up to 90,000 metric tons, or 659,700 barrels of oil
from Japan in 2008 and apply this amount towards the 90 day
strategic reserves required under its commitments to the
International Energy Agency (IEA). The contracted amount
represents approximately six days of supply for New Zealand
and 0.2 days of supply for Japan. In 2006, New Zealand
purchased 460,000 metric tons from the United Kingdom, the
Netherlands and Australia to meet its IEA commitments.

2. (SBU) According to METI Agency of Natural Resources and
Energy (ANRE) Deputy Director Kazuhiro Fukushima, this is the
first time Japan has ever entered into such an agreement and
there are no plans to conclude similar agreements with other
countries at this time. Fukushima stated should New Zealand
opt to purchase Japanese oil, the reserves would come from
Japan's private sector stockpile, not from national reserves.

3. (SBU) Petroleum Association of Japan (PAJ) Petroleum
Distribution Division Director Fumio Sato told an Embassy
economic assistant while the agreement allows the sale of
excess oil reserves, industry is "not particularly
enthusiastic" with the small volume and the prospect of a low
sale price due to competition from other countries,
particularly the U.K., the Netherlands and Australia. Sato
said Japanese companies were requested to place bids before
November 5, but he did not know whether any had been
submitted.
SCHIEFFER

© Scoop Media

 
 
 
World Headlines

 

UN SDG: UN Appoints Twenty Eminent Thinkers To Shed New Light On The World’s Greatest Challenges

New York, 21 January 2021 – Twenty prominent personalities, globally renowned for their intellectual leadership in economic and social fields, will form the second United Nations High-level Advisory Board (HLAB) on Economic and Social Affairs, the ... More>>

UN: As COVID Deaths Pass Two Million Worldwide, Guterres Warns Against Self-Defeating ‘Vaccinationalism'

With more than two million lives now lost worldwide to COVID-19, the UN Secretary-General appealed on Friday for countries to work together and help each other to end the pandemic and save lives. In a video statement , Secretary-General António Guterres ... More>>

UN: Violent Attempt At US Capitol To ‘overturn’ Election, Shocking And Incendiary

A group of independent UN rights experts released ... More>>

UN: Guterres To Seek Second Five-year Term
António Guterres will be seeking a second five-year term as UN Secretary-General, which would begin in January 2022.... More>>