Japan to back Middle East oil pipelines bypassing Strait of Hormuz

TOKYO, Aug 26 — Japan is set to back Middle East oil pipelines that bypass the Strait of Hormuz, as it seeks to bolster energy security following the war in Iran, according to local media reports. Prior to the conflict starting in February, Japan, the world's fourth-largest economy, had been heavily dependent on oil imports passing through the now-stranded Hormuz Strait.

The Nikkei daily newspaper reported that Japan will aid projects by Saudi Arabia and other nations aimed at expanding and constructing new routes for crude oil, which would circumvent the waterway. Japan has already drawn upon its oil reserves to mitigate supply issues and increase crude imports from other countries, including the United States.

The government's future plans, to be decided during a meeting today, may encompass initiatives such as establishing a specialized crude oil reserve for the production of naphtha, a versatile oil by-product with applications across various industries. Additionally, the government is anticipated to emphasize the optimization of nuclear power utilization and provide support for the development of next-generation perovskite solar cells.

This move aligns with Japan's ongoing efforts to revive its nuclear power sector, which was interrupted by the Fukushima disaster 15 years ago, partly driven by the anticipated surge in power demand fueled by the growing application of artificial intelligence.