Japan will start stockpiling crude oil produced in the United Arab Emirates on Monday under an accord that stipulates that Tokyo could receive emergency supplies with priority in the event of a global supply shortage, the Japanese government said Friday.
The first batch of shipments from Abu Dhabi, one of the emirates, is to arrive in Kagoshima Prefecture, southwestern Japan, on Monday, where Abu Dhabi National Oil Co. borrows a storage tank from the government, said the Natural Resources and Energy Agency.
The capacity of the tank is 600,000 kiloliters.
The Abu Dhabi government proposed the project in March. The accord, signed in June between Japan and the oil-rich emirate, is the first such agreement for Tokyo.
The partnership is also expected to benefit Abu Dhabi with the aim of expanding its shipments to other East Asian countries, Japanese officials said.
The UAE is the second-biggest oil exporter to Japan after Saudi Arabia. Its supply accounts for nearly 25 percent of Japan's overall oil imports.END
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