Japan announced on Wednesday, August 26, a plan to diversify its crude oil sources in order to reduce its dependence on the Strait of Hormuz. The plan includes working with Middle Eastern countries to build pipelines.

According to the Nikkei business daily, “the energy measures include subsidies for companies that purchase crude oil and refined products such as naphtha without passing through the Strait of Hormuz, to offset the increased transportation costs.”

The Japanese government’s search makes more sense than ever, considering that 90 % of its crude oil imports come from the Middle East.

In this regard, the archipelago is currently exploring alternative routes to obtain crude oil, including loading tankers at the port of Fujairah in the United Arab Emirates (UAE) or the port of Yanbu in Saudi Arabia, as well as considering other sources such as the United States, Algeria, and Peru.

“Under the direction of the state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC), the plan also includes undisclosed financial aid to fund the construction of pipelines in the Middle East.”

M.Pino

Source: swissinfo

(Reference image source: Jason Rost on Unsplash)

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