Tokyo intends to boost oil pipeline funding
The Japanese government intends to expand its financial support for Japanese companies interested in overseas oil pipeline projects, including in the Middle East. The goal is to enhance alternative methods of transporting oil and gas across the Gulf region and to bypass the Strait of Hormuz, especially after the strait was heavily impacted by closures. Possible measures include providing venture capital funding and expanding the role of the Japan Organization for Metals and Energy Security, in order to better understand and independently support oil pipeline projects. This move comes at a time when Saudi Arabia is considering expanding its crude oil pipeline capacity to the Red Sea coast, while Japan heavily relies on oil imports from the Middle East—over 90% of its oil passes through the Strait of Hormuz. The government sees increasing diversification in oil supply security as vital to reducing risks caused by disruptions in this crucial maritime route.
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