Aug. 2 (Bloomberg) -- Growing demand for oil and gas in Asia and other regions of the world is spurring competition for energy reserves that may threaten security and spark conflicts between nations, Japan's Defense Agency said in a policy paper.

``Many countries see it in their national interest to secure energy reserves and these resources, including oil and gas, can cause conflict between countries,'' the paper said.

A spat between Japan and China over ownership of possible gas reserves in the East China Sea has strained ties between Asia's two largest economies.

Japan wants China to halt drilling that it says will siphon gas from its territory. China's government has refused to stop the operations and protested Japan's decision to start granting drilling rights in the area.

Global demand for energy will probably grow by a half over the next 25 years, the paper said.

To contact the reporter on this story: Tim Kelly in Tokyo at tikelly@bloomberg.net.

Last Updated: August 1, 2005 20:44 EDT