Japan to Support Alternative Oil Pipelines Bypassing Strait of Hormuz

Japan's government is set to approve an energy security package that includes support for the construction of alternative oil pipelines in the Middle East, allowing crude shipments to bypass the critical Strait of Hormuz. The plan aims to strengthen Japan's energy security amid disruptions to shipping through the Strait.

The proposed program will provide subsidies for costs incurred by oil refineries and other companies purchasing crude through alternative routes. Insurance coverage may also be offered for such shipments.

Saudi Arabia is among the countries working on developing alternative oil pipeline routes, with Japan expected to support these initiatives. The measures are intended to mitigate potential supply disruptions to naphtha, a key feedstock for the petrochemical industry.