U.S. crude reaches Tokyo Bay as Japan diversifies oil supply

April 27 (Asia Today) -- A tanker carrying U.S. crude oil from Texas arrived in Tokyo Bay, marking Japan's first delivery of American oil as it moves to diversify supply away from the Middle East following disruptions in the Strait of Hormuz.

Japanese media reported that the tanker departed Texas on March 22 and arrived Saturday, becoming the first U.S. crude shipment to reach Japan since tensions escalated after U.S. strikes on Iran in late February.

The shipment will be transported via pipeline to a refinery in Ichihara, Chiba Prefecture, operated by Cosmo Energy Holdings, where it will be processed into gasoline and other petroleum products.

The cargo amounts to about 145,000 kiloliters, equivalent to roughly half a day of Japan's domestic oil consumption.

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Faster route via Panama Canal

The shipment highlights a strategic shift in shipping routes. Instead of traveling around the Cape of Good Hope, which can take about 55 days, the tanker passed through the Panama Canal and reached Japan in about 35 days, cutting transit time by roughly 20 days.

Japan has long depended heavily on Middle Eastern crude, much of which passes through the Strait of Hormuz. Any disruption in the waterway can affect electricity generation, logistics, aviation and petrochemical industries simultaneously.

The Ministry of Economy, Trade and Industry expects U.S. crude imports in May to reach about 90,000 barrels per day, roughly four times the level a year earlier and about 15% of Japan's total crude imports for the same period last year.

Including alternative supplies from regions that do not rely on the Strait of Hormuz, Japan could potentially replace up to 60% of last year's import volume, officials estimate.

Refining challenges remain

Despite the shift, U.S. crude cannot fully replace Middle Eastern oil in the short term.

Many Japanese refineries are optimized for heavier Middle Eastern crude, while U.S. oil has different properties. Adjustments in refining processes, operating conditions and output yields will be required, potentially increasing costs and processing time.

Still, analysts say the shipment marks a turning point in Japan's energy strategy, which has traditionally relied on long-term contracts with Middle Eastern suppliers and stable maritime transport routes.

Implications for South Korea

The development also raises questions for South Korea, which similarly depends heavily on Middle Eastern crude and operates refineries tailored to those imports.

Japan's move underscores how quickly Northeast Asian economies may need to restructure supply chains if disruptions in the Strait of Hormuz persist, highlighting the need for diversification and greater flexibility in refinery operations.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260427010008469