Korea and Japan have agreed to strengthen cooperation in crude oil and petroleum product swaps and mutual supply, as well as in crude oil procurement and transportation, and to coordinate on liquefied natural gas (LNG) supply and demand.

The two countries also agreed to further strengthen supply chain resilience cooperation in key industrial sectors and to launch a Korea-Japan Industrial and Trade Policy Dialogue involving high-level officials.

The Ministry of Trade, Industry and Energy announced on May 19 that President Lee Jae-myung and Japanese Prime Minister Takaichi Sanae held a summit in Andong, Gyeongsangbuk-do, and agreed to pursue enhanced cooperation in the areas of energy security and supply chain resilience.

In response, the Ministry of Trade, Industry and Energy and Japan’s Ministry of Economy, Trade and Industry (METI) agreed to jointly explore substantive cooperation measures to concretize follow-up actions from the bilateral summit.

First, the two countries will strengthen energy security. Building on their shared status as crude oil importers and their competitiveness in the refining and petrochemical industries, the two countries agreed to encourage public-private dialogue centered on crude oil and petroleum product swaps and mutual supply, as well as cooperation in crude oil procurement and transportation, so as to enable smooth cooperation in the event of an emergency.

In addition, as the world’s third- and second-largest LNG importers, respectively, the two countries agreed to continue and deepen LNG supply and demand cooperation. Korea Gas Corporation (KOGAS) and Japanese energy company JERA had previously signed an agreement on LNG supply and demand cooperation in Tokyo on March 14.

This round of LNG cooperation discussions focused on further advancing the energy security and LNG cooperation relationship between Korea and Japan.

Next, the two countries agreed to strengthen supply chain resilience. Building on the Korea-Japan Supply Chain Partnership signed by Minister Kim Jeong-gwan of the Ministry of Trade, Industry and Energy and METI Minister Akazawa Ryosei on March 14, the two countries agreed to further strengthen supply chain resilience cooperation in key industrial sectors and to advance crisis response mechanisms.

The two countries also agreed to coordinate in strengthening energy supply resilience across Asia. Through initiatives such as the Asia Energy and Resource Supply Chain Strengthening Partnership proposed by Japan, the two countries agreed to explore possibilities for cooperation across a range of areas, including stockpiling.

Furthermore, to concretely implement bilateral cooperation, the two countries agreed to further strengthen discussions, including the launch of a Korea-Japan Industrial and Trade Policy Dialogue involving high-level officials.
Source: Business Korea