Japan Unveils Energy Resilience Plan to Cut Hormuz Dependence
Japan's new energy plan supports Hormuz-bypass pipelines, diversifies crude imports, and boosts nuclear and renewables.
Japan has announced a comprehensive energy security package aimed at reducing its heavy reliance on crude shipments through the Strait of Hormuz, following supply disruptions triggered by the Iran war. The plan, presented at the government's Green Transformation (GX) Implementation Council, includes financial backing for pipeline projects that circumvent the strait and measures to diversify crude procurement.
Prime Minister Sanae Takaichi ordered the initiative after the conflict highlighted Japan's vulnerability. In 2025, Middle Eastern crude accounted for 94% of Japan's oil imports, with 93% of that volume transiting the strait. While no specific reduction target was set, the government will work with Middle Eastern producers on bypass pipelines, offering support through the Japan Organization for Metals and Energy Security (JOGMEC).
To encourage diversification, Tokyo plans a levy-funded scheme where refiners and traders share the extra transport costs of importing alternative supplies. A reinsurance mechanism for shippers is also proposed, ensuring operations continue if overseas reinsurance becomes unavailable. Additionally, the plan calls for building national naphtha reserves in crude form, addressing shortages of the petrochemical feedstock used in plastics and inks.
The strategy also advances cleaner energy. Japan, which spends over 20 trillion yen ($125.8 billion) annually on fossil fuel imports, aims to improve self-sufficiency by replacing 2–5 nuclear reactors in the 2040s and 11–14 in the 2050s. Domestic supply chains for perovskite solar cells, next-generation geothermal, and offshore wind power are also part of the roadmap. Specific legislative measures are expected by year-end.