Gov't denies online claim of naphtha shortage

TOKYO — Japan's top government spokesman denied on Monday an online claim that Japan would be unable to secure naphtha, a raw material derived from crude oil that is used to produce plastics, in June as Middle East tensions raise supply concerns.

Chief Cabinet Secretary Minoru Kihara told a regular press conference that the claim was "incorrect" and urged the public to check the government's official views when they see dubious or worrying information.

He said Japan has about four months of supply, including a total of two months of procured imported naphtha and domestically refined naphtha, plus two months of inventories of intermediate chemical products.

"At this point, no supply-demand problems have emerged, and Japan as a whole has secured the amount it needs," Kihara said.

His remarks follow a social media post by Prime Minister Sanae Takaichi on Sunday stating Japan has secured "at least four months of domestic demand" and that the stockpile could be increased to more than six months by doubling imports from outside the Middle East.

In the Middle East, Iran has effectively blocked the Strait of Hormuz, a chokepoint for global energy transportation, amid its war with the United States and Israel since late February, triggering supply disruptions and price surges.

Japan relies on the Middle East for more than 90 percent of its crude oil imports, most of which pass through the strait, as the ongoing conflict prompts the resource-poor country to explore ways to diversify suppliers and shipping routes.

The Ministry of Economy, Trade and Industry said imports of Middle Eastern crude oil via alternative routes through the Red Sea, west of Saudi Arabia, are expected to begin in earnest next month or later, without elaborating on suppliers.

The Japanese government is also considering procuring oil from Kazakhstan and aims to secure supplies from Azerbaijan.

Shunichi Suzuki, secretary general of Takaichi's Liberal Democratic Party, said at a separate press conference Monday that the government may ask the public to conserve energy if the situation in the Middle East worsens.

Suzuki, the LDP's No. 2, added that it is necessary to closely monitor the effects of measures such as releasing oil stockpiles.

The de facto closure of the Strait of Hormuz has also affected Japan's auto industry. Mazda Motor Corp said it will suspend production of cars for the Middle East until May, as shipments to the region have been stalled since March.

Still, its output will remain unchanged as it shifts to producing cars for export to Europe and the United States, Mazda said. Other major Japanese automakers, including Toyota Motor Corp and Nissan Motor Co, are reducing production.

© KYODO