Japan Bolsters Energy Resilience with Pipeline Bypass Support

Japan has unveiled a comprehensive plan to strengthen its energy supply resilience, including support for pipeline projects that bypass the Strait of Hormuz. The plan was outlined at a meeting of the government's 'Green Transformation' (GX) Implementation Council and specific measures are expected to be finalized by the end of the year.

Prime Minister Sanae Takaichi ordered the package after the start of the Iran war, which highlighted Japan's heavy reliance on Middle Eastern crude oil. Middle East imports accounted for 94% of Japan's crude oil in 2025, with 93% coming via the Strait of Hormuz.

The government plans to cooperate with Middle Eastern oil-producing countries on pipeline projects by providing financial support through the Japan Organization for Metals and Energy Security (JOGMEC). To diversify crude procurement, a levy-funded scheme will be introduced under which refiners and traders would share the additional transportation costs of importing alternative supplies.

The plan also features measures to expand 'cleaner' energy sources such as nuclear power and renewables. Japan aims to improve energy self-sufficiency by replacing two, five nuclear reactors in the 2040s and 11-14 in the 2050s, while building domestic supply chains for perovskite solar cells, next-generation geothermal, and offshore wind power.