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Japan Weighs Restarting Naphtha Stockpiling After July 7 Announcement
Industry minister Ryosei Akazawa said the government will review naphtha reserves amid Middle East supply risks. The move follows shortages of paints and solvents that have affected housing and construction.
Jul 16, 3:39 AM·1m read1 source
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The Japanese government is considering reviving naphtha stockpiling, Japan Times reported. Industry minister Ryosei Akazawa announced on July 7 that officials would examine the option in response to potential supply disruptions from the Middle East. Naphtha serves as a raw material for plastic products and paints.
Japan obtains 40 percent of its naphtha through imports from the Middle East, while domestically produced naphtha accounts for about 40 percent, much of it derived from crude oil sourced in the same region. The housing and construction industries have faced shortages of paints and solvents.
Mandatory naphtha stockpiling, once required like oil reserves, ended in 1993 after the petrochemical industry cited high costs.
Naphtha evaporates easily, which complicates long-term storage. The industry ministry is examining pellet-form storage and expanding crude oil stockpiles to allocate a portion for naphtha production. Mitsubishi Chemical Group President and CEO Manabu Chikumoto, who chairs the Japan Petrochemical Industry Association, said Japan needs naphtha reserves but added that stockpiling in liquid form is not very realistic.
A ministry official stated the government aims to reach a decision as soon as possible, though an oil company official noted the issue spans multiple industries.
