Japan to Release Second Tranche of National Oil Reserves, Shipments Start May 1

Japan’s Ministry of Economy, Trade and Industry said Friday it will carry out a second release of national crude oil reserves, equivalent to about 20 days of domestic consumption, with shipments beginning May 1 as the government seeks to stabilize supplies amid Middle East disruption and reduce reliance on routes through the Strait of Hormuz.

METI said it will release about 5.8 million kiloliters of national oil reserves and direct the crude to four major refiners: ENEOS, Idemitsu Kosan, Cosmo Oil and Taiyo Oil. The ministry said the move will be implemented under Article 31 of the Oil Stockpiling Act, which allows the minister to transfer or lend national stockpiles in the event of supply disruption. The release will be carried out from national stockpile bases across Japan.

The move marks the second tranche of Japan’s emergency reserve drawdown in the current disruption. On March 24, METI announced an initial release of about 8.5 million kiloliters, which it described as roughly one month of domestic consumption, with implementation starting March 26. Taken together, the March and April releases total about 14.3 million kiloliters, or roughly 50 days of consumption by the government’s measure.

Japan has been escalating its energy-security response in stages rather than relying on a single intervention. Before turning to national reserves, METI reduced the private-sector stockpiling requirement by 15 days, lowering the obligation from 70 days to 55 days starting March 16. The ministry said April 15 that the lower requirement would remain in effect through May 15.

METI has framed the reserve releases as a bridge while importers expand alternative procurement routes that do not pass through the Strait of Hormuz, a critical oil shipping chokepoint. On April 15, the ministry said it expected that in May, more than half of the previous year’s procurement volume could be secured through routes avoiding the strait. Friday’s announcement said the latest release is intended to help ensure a stable crude supply in light of current developments in the Middle East while those alternative arrangements are being put in place.

The drawdown comes from a large reserve base. Around March 20, Japan had combined oil stocks equal to about 241 days of consumption, including about 146 days of national reserves, according to METI and the Agency for Natural Resources and Energy, known as Enecho. That suggests the latest action is a managed emergency release rather than a sign of immediate depletion.

Operationally, Japan Oil, Gas and Metals National Corp., or JOGMEC, runs the national stockpile bases and handled the first tranche of the release program. Friday’s decision extends that program as Japan continues to use reserve policy, relaxed private stockpile rules and rerouted procurement to cushion supply risk tied to the Middle East and the Hormuz route.