Japan establishes panel to review oil product stockpiling measures
Japan’s Ministry of Economy, Trade and Industry has established a new working group to examine measures for strengthening oil product reserves and diversifying sources of crude oil imports amid growing concerns over potential supply disruptions, Qazinform News Agency cites Jiji Press.
The panel will focus on medium- and long-term strategies, including the possibility of stockpiling petroleum products such as naphtha, in response to risks posed by tensions in the Middle East and the potential disruption of shipping through the Strait of Hormuz, a critical route for global crude oil supplies.
The working group was created under the ministry’s Advisory Committee for Natural Resources and Energy and includes university professors, lawyers, and other experts. Its first meeting was held Friday behind closed doors.
Japan previously required companies to maintain naphtha reserves, but the obligation was removed in 1993 due to the high costs associated with maintaining stockpiles.
Trade Minister Ryosei Akazawa said earlier this year that the government would consider reinstating naphtha stockpiling requirements following a series of reports about shortages of thinners and paints manufactured using the petroleum-based chemical.
Earlier, Qazinform reported Japan weighs naphtha stockpiling amid Middle East supply risks.
