Japan broadens search for alternative oil and naphtha supplies

TOKYO, March 31 (Reuters) - Japan is broadening its search for alternative crude oil and naphtha supplies as the Iran war tightens energy availability, a senior official at the industry ministry said on Tuesday.

Japan imported 94% of its crude from the Middle East in 2025, with 93% of shipments passing through the Strait of Hormuz, which Iran has effectively closed.

• Japan is contacting the U.S., Central Asian countries such as Azerbaijan and Kazakhstan, and Latin American producers including Brazil, Argentina, Ecuador, Colombia and Mexico, Narumi Hosokawa, deputy director-general for immediate crisis management at the Ministry of Economy, Trade and Industry, told reporters.

• Other candidates are Malaysia and African producers such as Nigeria and Angola, he added.

• In the Middle East, Japan is trying to expand procurement via alternative routes that bypass the Strait of Hormuz, including shipments from the Port of Yanbu on Saudi Arabia's Red Sea coast and the Port of Fujairah in the UAE.

• The first vessel has already arrived in Japan, and crude oil loaded at both ports is scheduled to arrive sequentially, Hosokawa said, without giving further details.

• Efforts to secure alternative sources of naphtha are also being stepped up. While the usual monthly procurement volume from sources outside the Middle East is 450,000 kilolitres, the volume for April is expected to double to 900,000 kl, including 300,000 kl from the U.S., Hosokawa said.

• Japan is also approaching Algeria, Australia, India, and Peru as potential naphtha suppliers, he added.