Japan to support Middle East pipelines to bypass Strait of Hormuz

Japan is preparing to unveil a comprehensive energy resilience plan aimed at reducing its heavy reliance on crude oil passing through the Strait of Hormuz. Following the closure of the waterway due to the Iran war, the government is seeking to diversify its procurement and support alternative Middle Eastern pipeline projects to bypass the strait.

Through the Japan Organization for Metals and Energy Security (JOGMEC), the country plans to assist initiatives by Saudi Arabia and other nations to expand or build new crude oil routes. To manage the costs of importing alternative oil, a scheme may be implemented where companies share the increased transport expenses.

Additional measures include the creation of strategic stockpiles for naphtha, a critical petrochemical feedstock, to prevent industrial shortages. The government is also expected to focus on maximizing nuclear power usage and supporting next-generation perovskite solar cells to meet rising power demands, including those from the AI sector.