Japan to back pipelines bypassing Strait of Hormuz

The Japanese government is preparing to adopt a new energy stability plan that includes support for building alternative oil pipelines in the Middle East to bypass the Strait of Hormuz, Report informs, citing NHK TV.

The plan is expected to be formally approved at a cabinet meeting on August 26. It also envisions the creation of oil reserves for naphtha production, a key component of the petrochemical industry, as supply disruptions have raised concerns among Japanese businesses.

According to Nikkei, Prime Minister Sanae Takaichi will present the plan at the meeting. Saudi Arabia is mentioned among the countries working on alternative pipeline projects, which Japan is expected to support.

The program also foresees subsidizing costs for refineries and companies importing oil via alternative routes, as well as providing insurance coverage for such supplies.

A corresponding bill is expected to be submitted to parliament in the autumn extraordinary session.

In recent years, Japan has imported over 90% of its oil from Middle Eastern countries, with a significant portion transported through the Strait of Hormuz.