Japan Breaks Free from Hormuz Dependence with Comprehensive Energy Policy Package

The Japanese government has approved a comprehensive energy policy package to strengthen its energy supply and demand structure resilience. The plan, titled 'Power GX,' aims to reduce dependence on the Strait of Hormuz by promoting alternative procurement routes for crude oil and naphtha.

The new subsidy program will cover increased transportation costs for businesses that procure crude oil and naphtha without transiting the Strait of Hormuz. Eligible candidates include Fujairah Port in the UAE, Yanbu Port in Saudi Arabia, and imports from outside the Middle East, such as the United States, Algeria, and Peru.

The program is structured as a grant system for oil refiners and other companies that secure multiple supply regions and routes. The Japan Organization for Metals and Energy Security (JOGMEC) will handle operational implementation.