Idemitsu Reroutes Saudi Crude Amid Red Sea Shipping Disruptions

Idemitsu Kosan, Japan's second-largest oil refiner, has altered its crude supply chain due to ongoing disruptions in Red Sea shipping. The company is now sourcing Saudi crude through the Suez route and around the Cape of Good Hope, while maintaining access to UAE crude and North American supplies.

According to President Sakai, Idemitsu does not see an immediate threat to stable crude supplies, despite the longer transit times caused by Houthi attacks on the Bab el-Mandeb Strait. The company plans to continue procuring Saudi crude through the Suez route, which has been made possible by additional crude cargoes offered by Saudi Aramco since July.

Japan remains heavily dependent on Middle Eastern crude, with around 94% of its imports coming from the region in 2025. President Sakai emphasized the importance of maintaining access to Middle Eastern crude, citing long-standing relationships between Japanese companies and producers as well as the suitability of regional crude for Japanese refineries.

Idemitsu's new five-year business plan aims to improve refinery utilization by at least 90% through maintenance and corrosion-prevention expertise. The company also sees liquefied natural gas as a growth opportunity, with plans to secure LNG offtake and marketing opportunities while expanding its trading activities.