Japan to help New Zealand build stocks

Japan agreed in principle to provide New Zealand options to buy oil from its private stockpiles so that the latter can be prepared for emergency situations, officials from the Ministry of Economy, Trade and Industry (METI) said. The agreement was made between Japan’s Minister of Economy, Trade and Industry, Akira Amari, and New Zealand’s Associate Minister for Energy, Harry Duynhoven. Japan and New Zealand are expected to sign a final accord, which would be Japan’s first bilateral cooperation on stockpiling for emergency situations by mid-October, METI officials said. This is part of Tokyo’s initiatives to help New Zealand ensure that it is holding oil stocks equivalent to 90 days of net imports, according to its commitment for membership to the International Energy Agency, METI officials said. Under the agreement, New Zealand has the option to buy crude oil or oil products solely for the IEA 90-day commitment from Japan’s private stockpile at US$1 to $2 per metric ton above prevailing crude oil prices. (August 23, 2007)