Japan sees naphtha-based chemical supplies lasting past New Year
Prime Minister Sanae Takaichi says alternative imports and stockpiles should cover demand despite Middle East tensions.
- Prime Minister Sanae Takaichi announced that Japan's supply of naphtha-based chemical products is expected to last until after the beginning of the new year.
- To achieve this, Japan is securing alternative procurement routes, with naphtha imports from the US, Algeria, and Peru expected to triple in May.
- The supply is further bolstered by existing stockpiles of naphtha-based products, such as polyethene, which are equivalent to 1.8 months of demand.
- Even in a conservative scenario where only 50% of crude oil is procured through alternative routes, officials project supplies will be sufficient until early next year.
Japan should have sufficient supplies of naphtha-based chemical products “until after” the beginning of next year, Prime Minister Sanae Takaichi said Thursday (April 30).
Takaichi gave the outlook during a ministerial meeting on the Middle East crisis at the prime minister’s office, revising her earlier estimate that Japan had enough naphtha-based products for “more than six months.”
Naphtha is used in products including food trays and paints. Since her previous remarks, Japan has moved to secure alternative procurement routes outside the Middle East.
Takaichi said imports of naphtha from the United States, Algeria, Peru and other countries are expected in May to triple from levels seen before Middle East tensions escalated.
Together with stockpiles of naphtha-based products such as polyethene, equivalent to 1.8 months of supply, Japan should be able to meet demand until after the start of next year, she said.
At the meeting, Takaichi also ordered the government to call on related industries to prevent hoarding, including excessive bulk purchases.
Officials also reported steps to ease distribution bottlenecks affecting cleaning agents for surgical knives and other medical-sector products. Procurement problems involving methanol at some waste disposal facilities are expected to be resolved soon.
Takaichi said, “Even under a conservative scenario, in which only about 50 per cent (of crude oil) could be procured through alternative routes in and after June, we'll still be able to have enough (oil) until early next year.”
The government will begin releasing additional state oil reserves equal to about 20 days of domestic consumption on Saturday, one day later than planned, because of bad weather.
[Copyright The Jiji Press, Ltd.]
