Naphtha, a key feedstock used in the production of plastics, paints, and other petrochemical products, was previously subject to mandatory stockpiling requirements. However, the policy was abolished in 1993 after the petrochemical industry argued that maintaining reserves imposed significant financial burdens.
Renewed calls to restore naphtha stockpiles have gained traction as geopolitical risks threaten global energy supply chains. Despite growing support, the proposal faces practical challenges, including the safe storage of the highly volatile fuel and determining who would be responsible for covering the associated costs.
Japan sources approximately 40 percent of its naphtha imports from the Middle East. Another 40 percent is produced domestically, although much of that output is refined from crude oil imported from the region.
It is highlighted that Japan’s housing and construction sectors have been affected by shortages of paints and solvents.
Earlier, Qazinform reported KazMunayGas and Japanese companies explore new energy partnerships.