Oil & Gas Advancement observes that by automating the collection of data from flow meters, tank gauges, and laboratory reports, midstream companies can now achieve near real time visibility into the volume and quality of the hydrocarbons moving through their networks. This transition to automated systems is a critical part of midstream financial tech, as it directly impacts the accuracy of invoicing, royalty payments, and tax filings. The goal is to create a single version of the truth that all stakeholders, including producers, pipeline operators, and regulators, can rely on for their financial and operational decisions.

The market for these solutions is growing rapidly as companies seek to improve their efficiency and compliance. This growth is being driven by the increasing complexity of global supply chains and the need for more robust hydrocarbon audit logs to meet stringent regulatory requirements. As the industry continues to digitalize, the ability to automate complex accounting tasks is becoming a major competitive differentiator for midstream operators. This financial transparency is further enhanced when midstream data flows directly into cloud native ERP systems, creating a seamless connection between production accounting and global supply chain logistics.

Enhancing Accuracy in Production Volume Allocation

Production volume allocation is the process of determining how much of a shared stream of hydrocarbons belongs to each individual producer or well. This is a complex task because the physical characteristics of the fluids, such as API gravity and sulfur content, can change as they are blended in a pipeline. Automated hydrocarbon accounting systems use sophisticated mathematical models to perform these allocations based on the most recent quality data and flow measurements. This ensures that every producer is fairly compensated for the actual value of their production rather than an estimated average.

The use of automation also allows for more frequent and detailed allocations. Instead of performing a monthly reconciliation, many systems can now provide daily or even hourly allocation reports. This level of granularity is invaluable for producers who need to monitor the performance of their assets in real time and for pipeline operators who need to manage their capacity and balancing requirements more effectively. The transparency provided by shared pipeline accounting systems helps to reduce disputes between stakeholders and builds trust across the value chain.

The importance of accuracy in these operations cannot be overstated. Even a small error in volume measurement or quality analysis can lead to significant financial discrepancies when applied to the massive scales of modern energy projects. By implementing automated oil volume verification processes, companies can detect and correct measurement anomalies before they propagate through the accounting system. This proactive approach to data quality is a fundamental requirement for maintaining the integrity of the financial settlement process.

The Role of Midstream Financial Tech

Midstream financial tech encompasses a wide range of digital tools designed to improve the efficiency and security of financial operations in the energy sector. Automated hydrocarbon accounting is a cornerstone of this field, as it provides the foundational data for revenue management and contract compliance. Modern systems are increasingly integrated with enterprise resource planning software and blockchain platforms to create more secure and automated workflows. This integration allows for the automatic generation of invoices and the immediate settlement of payments once the volume and quality of the hydrocarbons have been verified.

The shift toward these technologies is part of a broader trend of digital transformation in the industry. In the midstream sector, this investment is focused on creating more resilient and transparent operations that can adapt to the changing needs of the market. The ability to provide fast and accurate financial reporting is essential for maintaining investor confidence and securing the capital needed for new infrastructure projects.

Another key aspect of midstream financial tech is the use of advanced analytics to optimize the performance of the pipeline network. By combining accounting data with operational metrics, companies can identify bottlenecks and inefficiencies in their systems. This allows them to make more informed decisions about maintenance schedules, capacity expansions, and commercial strategies. The goal is to maximize the throughput of the network while minimizing the operational and financial risks associated with moving large volumes of hazardous materials.

Improving Compliance with Hydrocarbon Audit Logs

Regulatory compliance is a major consideration for any company operating in the oil and gas industry. Governments and environmental agencies require detailed reporting on the volumes of hydrocarbons produced, transported, and sold. Automated hydrocarbon accounting systems simplify this process by maintaining comprehensive hydrocarbon audit logs that track every change to the data from the point of measurement to the final report. These logs provide a clear and defensible trail of information that can be easily reviewed by auditors and regulators.

The automation of these reports also reduces the risk of human error and data manipulation, which is a significant concern for regulators. By ensuring that the data is collected and processed in a consistent and transparent manner, companies can demonstrate their commitment to ethical and compliant operations. This is particularly important in regions with complex royalty and tax structures, where accurate reporting is essential for maintaining the operator’s license to operate.

As the industry faces increasing scrutiny over its environmental and social performance, the role of transparent reporting is becoming even more critical. Many companies are now using their hydrocarbon accounting systems to track carbon emissions and other environmental metrics associated with their operations. This integrated approach to reporting helps them to meet their sustainability goals and provide more complete information to their stakeholders. The move toward more holistic and automated reporting is a key part of the industry’s response to the challenges of the energy transition.

Overcoming Integration Challenges

Implementing automated hydrocarbon accounting is a significant undertaking that requires the integration of diverse data sources and systems. Midstream operators often have to deal with legacy equipment and fragmented software that was not designed to work together. The challenge is to create a unified data architecture that can handle the massive volumes of information generated by modern sensors and meters. This requires a combination of robust hardware, flexible software, and a clear data governance strategy.

One of the most important factors in a successful implementation is the quality of the initial data. If the meters are not calibrated correctly or the sensors are not providing accurate readings, even the most advanced accounting system will produce unreliable results. This is why many companies are investing in more accurate measurement technologies and more rigorous maintenance programs as part of their automation strategy. The goal is to ensure that the entire data lifecycle, from the wellhead to the balance sheet, is based on high quality information.

Another challenge is the need for cultural change within the organization. Moving from manual processes to automated systems requires employees to develop new skills and adapt to new ways of working. This transition can be difficult for some staff who are used to the old methods of operation. Successful companies are those that invest in training and communication to ensure that their employees understand the benefits of the new systems and are empowered to use them effectively.

Global Technology Leaders Modernizing Midstream Hydrocarbon Accounting and Custody Transfer

The digital transformation of midstream volumetric management highlighted in the article is being realized through large-scale deployments by international industrial software and automation providers. Specialized energy software developer Quorum Software integrated zdSCADA into its FLOWCAL architecture to unify field SCADA polling engines with automated flow measurement, exception handling, and contract allocation.

In physical metrology and custody transfer, ABB established a nationwide partnership to deploy high-precision ultrasonic meters paired with Spirit IT flow computers to secure defensible measurement logs across North American gas pipelines, while Emerson advanced full-spectrum midstream integration by acquiring Aspen Technology to merge physical pipeline instrumentation with enterprise reconciliation software.

Simultaneously, Kongsberg Digital deepened its deployment of K-Spice and LedaFlow simulation software with operators like Equinor to model complex multiphase pipeline streams in real time, and Rockwell Automation scaled its Sensia Avalon platform to bridge edge flow meters directly into cloud-based accounting systems. Together, these official commercial milestones prove that the midstream industry is rapidly eliminating manual spreadsheets in favor of automated, audit-proof allocation architectures that secure revenue settlement and regulatory compliance across shared infrastructure.

The Future of Shared Pipeline Accounting

The future of shared pipeline accounting will be defined by the increasing use of artificial intelligence and distributed ledger technology. AI algorithms can be used to predict flow patterns and identify potential issues in the network before they occur, allowing for more proactive management of the pipeline. Blockchain technology offers a more secure and transparent way to manage the shared records of the pipeline, ensuring that all parties have access to the same information and that the records cannot be altered without consensus.

As the energy market continues to evolve, we can also expect to see more integrated and collaborative models of operation. Midstream companies may increasingly share their accounting platforms with their customers and partners, creating a more seamless and efficient ecosystem. This would allow for faster and more accurate settlement of transactions and a more responsive supply chain. The move toward a more connected and automated midstream sector is essential for meeting the growing demand for energy while maintaining the highest standards of efficiency and safety.

The growth of the oil and gas automation market is a clear sign of this trend. Oil & Gas Advancement believes that by automated hydrocarbon accounting will remain a critical part of this evolution, providing the financial backbone for a more modern and transparent energy industry. The companies that lead the way in adopting these technologies will be the ones that are best positioned to thrive in the complex and competitive energy landscape of the future.

References

• Quorum Software
• ABB
• Emerson
• Kongsberg Digital
• Rockwell Automation

The shift toward intelligent lifting pump station solutions is driven by the need for greater operational reliability and the increasing complexity of modern pumping equipment. As pumps become larger and more sophisticated, Oil & Gas Advancement observes that the margin for error during a repair decreases. A slight misalignment during the installation of a new pump shaft can lead to vibration issues that eventually cause a catastrophic failure. Intelligent lifting tools address this by providing automated stabilization and millimeter-level positioning, ensuring that every component is handled with the care it deserves. This technological leap is not just about moving heavy objects. It is about providing the surgical precision required to maintain the integrity of the world’s energy lifelines.

Revolutionizing Maintenance with Automated Precision

One of the primary challenges in oil pump station repairs is the limited space available for traditional lifting equipment. Many older stations were not designed with modern maintenance requirements in mind, meaning that technicians often have to work around a dense maze of pipes, valves, and electrical conduits. Intelligent lifting tools for oil pump station fix applications address this by utilizing compact, modular designs that can be assembled within the station itself. These systems often include specialized gantry cranes or portable lifting frames that are equipped with intelligent hoist units. These hoists do not simply move up and down. They are governed by sophisticated control algorithms that manage the speed and tension of the lift to prevent any sudden jolts or swings.

The precision of these tools is further enhanced by the use of electronic load-leveling systems. When lifting an irregular load, such as a pump casing with an off-center center of gravity, traditional lifting methods often result in the load tilting, which can damage internal seals or the foundation bolts. An intelligent lifting pump station tool uses real-time sensor data to adjust the tension in multiple lifting points simultaneously, keeping the load perfectly level throughout the entire maneuver. This level of automated precision significantly reduces the risk of equipment damage and ensures that the pump can be returned to service as quickly as possible, maintaining the station’s overall throughput and reliability.

Specialized Gantry Systems and Portable Lifting Frames

The versatility of intelligent lifting tools is best seen in the development of specialized gantry systems. Unlike permanent overhead cranes, which may not reach every corner of a pump station, these portable systems can be positioned exactly where they are needed. They are often constructed from high-strength, lightweight alloys, allowing them to be moved by a small team and set up in hours. The intelligence comes from the integrated control units that allow these gantries to communicate with other maintenance tools, creating a synchronized workflow. For instance, the lifting system can be programmed to wait until a specific bolt has been removed—detected by a smart wrench—before initiating the lift.

Portable lifting frames also feature advanced anti-sway technology. In the tight quarters of a pump station, a swaying load can easily collide with nearby infrastructure, causing significant damage. The intelligent control system monitors the movement of the load and automatically adjusts the horizontal movement of the crane to counteract any pendulum effect. This feature is particularly valuable when moving components through narrow access hatches or around overhead obstructions. By providing a stable, controlled lifting environment, these specialized tools allow maintenance crews to focus on the technical aspects of the repair rather than the logistics of moving the equipment, increasing the overall quality of the fix.

Sensory Feedback for Delicate Component Handling

The handling of high-precision pump components requires a soft touch that is difficult to achieve with manual lifting. Intelligent lifting tools for oil pump station fix operations incorporate sensory feedback mechanisms, such as strain gauges and laser distance sensors, to provide the operator with a detailed picture of the load’s status. If the system detects that a component is binding or that the resistance is higher than expected—indicating that a part is still partially attached—it can automatically pause the lift and alert the technician. This prevents the brute force accidents that can occur when a traditional crane operator fails to notice a snag.

Laser sensors are also used to provide exact distance measurements between the component being lifted and its destination. This is crucial for the installation of pump seals and bearings, where clearances are measured in microns. The intelligent lifting pump station system can guide the component into place with sub-millimeter accuracy, reducing the need for manual prying and hammering. This not only speeds up the installation process but also protects the delicate surfaces of the components, ensuring a longer service life and better pump performance once the station is back online. The integration of these sensors transforms the lifting tool from a simple winch into a high-precision maintenance instrument. This precision is analogous to the technology used for smart sensors improving crane safety in global refineries, where real-time monitoring prevents collisions in similarly dense industrial environments.

Safety Enhancements in Confined and Hazardous Spaces

Pump stations are often classified as hazardous environments due to the potential presence of explosive vapors. Furthermore, the confined nature of these facilities makes them high-risk zones for personnel during lifting operations. Intelligent lifting tools address these safety concerns through the use of remote control and tele-operation. By allowing the operator to stand at a safe distance—outside the station’s immediate work zone or even in a centralized control room—these tools remove the human element from the most dangerous parts of the repair. High-definition cameras and virtual reality interfaces provide the operator with a front-row seat to the action without the physical risk.

These tools are also designed to be inherently safe for use in explosive atmospheres. By utilizing spark-resistant materials, hermetically sealed electronics, and pneumatic or low-voltage electrical systems, intelligent lifting tools for oil pump station fix projects meet the strictest ATEX and NEC safety standards. This allows maintenance to proceed without the need for extensive hot work permits or the total shutdown of the facility’s safety systems. The result is a more streamlined repair process that prioritizes the safety of the workforce while maintaining the operational readiness of the station.

Remote Control and Tele-Operation in Explosive Atmospheres

The transition to tele-operation marks a significant shift in industrial maintenance. In a modern intelligent lifting pump station setup, the operator uses a sophisticated console that provides haptic feedback, allowing them to feel the weight and movement of the load through the controls. This physical connection, combined with real-time video feeds from multiple angles, gives the operator a level of control that surpasses traditional on-site operation. In the event of an emergency, the system can be instantly shut down from the remote console, ensuring that a potential accident is neutralized before it can escalate.

Furthermore, remote control allows for the use of virtual exclusion zones. The software controlling the lifting tool can be programmed with a digital map of the pump station, creating zones where the crane is physically unable to go. This prevents the operator from accidentally moving a load over a live electrical panel or a high-pressure line. This digital fencing is an invaluable safety feature in complex facilities where one mistake can have catastrophic consequences. By combining physical robustness with digital guardrails, intelligent lifting tools are creating a safer, more predictable environment for the men and women who maintain our energy infrastructure.

Automated Stabilization and Load Balancing Protocols

One of the most dangerous moments in a pump station repair is the initial breakout of a heavy component, where it is first lifted from its foundation. Often, the component may be stuck due to corrosion or old gaskets, and when it finally lets go, it can jump or lurch unpredictably. Intelligent lifting tools for oil pump station fix operations use automated stabilization protocols to manage this risk. The system maintains a constant, controlled tension on the lifting lines, and as the component breaks free, the sensors detect the sudden change in resistance and instantly adjust the winch to prevent any upward surge.

Load balancing is equally important during the transport phase of the repair. If a component is moved horizontally through the station, the weight distribution on the crane’s supports can change. The intelligent system monitors the balance of the entire lifting frame and can automatically adjust the position of counterweights or the extension of stabilizing legs to ensure that the tool remains perfectly stable. This proactive approach to load management ensures that every lift, from the smallest valve to the largest motor, is performed with the highest degree of safety and control, making the intelligent lifting pump station the new standard for midstream maintenance.

Impact on Downtime and Operational Reliability

The ultimate goal of integrating intelligent lifting tools is to reduce the time a pump station spends offline. Oil & Gas Advancement believes that by making repairs faster and more accurate, these tools directly contribute to the bottom line of the pipeline operator. A repair that once took a week can now be completed in days, allowing the station to return to full capacity and minimizing the disruption to the broader energy supply chain. Furthermore, the increased precision of the repairs means that the pumps operate more efficiently and require less frequent maintenance in the long term, further enhancing the facility’s reliability.

As we look toward the future, we can expect to see even more integration between lifting tools and the pump station’s overall management system. Future intelligent lifting tools for oil pump station fix projects may be capable of automatically downloading the maintenance history and technical specifications of a pump before the repair begins, allowing the system to pre-configure its control settings for that specific asset. The evolution of these tools is a testament to the power of digital transformation in the industrial sector, proving that even the most heavy-duty tasks can benefit from the application of intelligence and foresight.

References

• Enerpac adds Diesel Split Flow Pump capabilities to its portfolio through acquisition of Hydra-Pac technology
• Raising the Bar on Safety with Integrated Solutions
  

Namibia’s Minister of Industries, Mines and Energy Modestus Amutse announced on Monday that the TotalEnergies bidding group had been selected as the successful bidder following an open competitive bidding process. Its trading company, TOTSA, has been designated as the supplying member under the agreement. The three-month arrangement includes approximately 246.9 million litres of diesel and 98.4 million litres of petrol. The first shipment is expected to arrive in November, marking the start of the bulk fuel supply deal.

Discounted Fuel Pricing to Deliver Savings

The successful bid provides discounts against the Basic Fuel Price (BFP), offering 61 cents per litre on diesel and 71 cents per litre on petrol. These discounts result in a weighted average discount of 63.85 cents per litre. According to the Ministry, the pricing arrangement is expected to deliver savings of about N$220.5 million during the three-month supply period. The savings will accrue to the national fuel price account, known as the slate, which is managed under the National Energy Fund.

The Ministry said the latest bulk fuel supply deal represents another reduction in Namibia’s fuel import costs. Previous supply arrangements had shifted from suppliers charging premiums above the BFP to fuel being supplied at the benchmark price. In the latest tender, all four participating companies offered to supply fuel at discounts to the BFP, while none requested a premium.

“For years, Namibia paid more than the Basic Fuel Price, the official reference price for imported fuel, to have its fuel supplied: suppliers charged a premium on top of that benchmark,” Amutse said.

“In the last supply round, the Ministry removed that premium entirely: fuel was supplied at the BFP itself, with nothing added. This round, we have gone a step further,” he added.

Government Continues Competitive Fuel Procurement

Amutse said the N$220.5 million saving would strengthen the government’s ability to keep domestic pump prices stable. The Ministry said the bids were evaluated using several criteria, including bidder qualification, pricing, security-of-supply risks and the standing and track record of each supplier. Amutse said the government would continue using competitive bidding to procure Namibia’s bulk fuel requirements while ensuring security of supply.

Mechanisms and Engineering of Onboard Capture

Technological Pathways: Chemical Absorption vs. Cryogenic Separation

Hybridization with Alternative Marine Fuels

Milestone Commercial Deployment: The Nexus Victoria Project

Market Validation and Fleet-Wide Scalability

Full-Value-Chain Decarbonization and Scope 3 Reductions

Naval Architecture and Retrofit Challenges

Port Infrastructure and Regional Carbon Hubs

Regulatory Pressures: IMO Mandates and the EU ETS

Repurposing Captured Carbon in a Circular Economy

Strategic Imperatives for Next-Generation Fleets

Classification Standards and Digital Verification

Workforce Upskilling and Operational Competency

References

• MOL Becomes First Japanese Operator to Commercially Install Onboard CO2 Capture System | Press Release | Mitsui O.S.K. Lines, Ltd.
• Value Maritime Equips MOL Tanker With Carbon Capture System
• First Japanese Ship with Onboard Carbon Capture Delivered – Ship & Bunker

Supply Chain Vulnerabilities and Government-Led Procurement

The Equinor-SEFE Bilateral Agreement

Expanding Physical Infrastructure and Import Terminals

Regulatory Interventions and Market Distortion Risks

Cross-Border Integration and Regional Alliances

Digital Transparency and Real-Time Supply Chain Tracking

Shifting Project Finance Toward Long-Term Commitments

Defending Critical Assets Against Cyber Threats

Securing Maritime Routes and Offshore Facilities

The Balancing Influence of U.S. LNG Exports

Low-Carbon Integration and Future Technological Resilience

Developing and Retaining the Energy Workforce

References

• Equinor and Germany’s SEFE enter long-term gas sales agreements and pursue large scale hydrogen supplies
• Germany’s Sefe, Norway’s Equinor strike $55 billion gas supply deal

Focus on Asian Buyers and New Supply Sources

Portfolio Expansion Across Multiple Regions

Key Assets in the Asset Acquisition Transaction

The transaction regarding the Tallgrass Energy assets encompasses several major infrastructure components that enhance Enbridge’s acquisition capabilities. The company will acquire a 75% interest in the Pony Express Pipeline, spanning 1,050 miles with transportation capacity of approximately 460,000 barrels per day. This critical corridor connects Rockies crude production directly with Cushing, Oklahoma, and provides access to roughly 500,000 barrels per day of nearby refining capacity.

Strategic Connectivity and Production Basin Access

Financial Structure and Valuation

Enbridge values the $2.55 billion purchase price at an estimated forward enterprise value-to-EBITDA multiple ranging from 10 to 11 times. The acquisition also includes the PXP2 expansion project, representing approximately $300 million in planned investment designed to increase Pony Express capacity to roughly 515,000 barrels per day.

The PXP2 project benefits from take-or-pay contracts and is scheduled to commence operations in late 2027. Upon transaction closure, Enbridge intends to incorporate PXP2 into its secured growth backlog, which currently stands at $41 billion.

Broader Strategic Implications

Under the approved arrangement, Jordan will import liquefied natural gas before regasifying it through existing infrastructure at Aqaba. The gas will then be transported through Syria to Lebanon, where it will be used for power generation, according to a Prime Ministry statement. The arrangement also adds to Jordan’s position as a regional energy hub, building on its existing role in supplying Syria with natural gas since the beginning of the year through the same mechanism.

Energy-Efficiency Measures Also Approved

Alongside the decision concerning the natural gas supply, the Cabinet approved steps to implement an energy-efficiency project across government buildings. The project will be based on energy audits and is expected to lower government energy bills by around 20 per cent. Work is scheduled to start at a number of ministries next year, with the programme subsequently set to expand to other government institutions.

Jordan, Syria and Lebanon had signed an agreement in May to cooperate on natural gas supplies after a trilateral meeting in Amman involving the energy ministers of the three countries. Minister of Energy and Mineral Resources Saleh Kharabsheh said at the time that technical preparations had been completed, contracts signed and studies conducted to rehabilitate gas transmission networks. The agreement calls for Jordan to use its infrastructure to import liquefied natural gas, regasify it and pump it to Syria through the Arab Gas Pipeline.

Regional Energy Cooperation Gains Momentum

Syrian Energy Minister Mohammad Bashir said the gas supplied through Jordan had contributed to stabilising Syria’s electricity grid. He also voiced hope that regional electricity interconnection between Jordan, Syria and Lebanon could be restored, noting that four power lines connecting Syria and Lebanon were ready on both sides. Bashir said Syria expects its natural gas production to reach 15 million cubic metres per day by the end of 2026, compared with around 7 million cubic metres currently.

Lebanese Energy and Water Minister Joseph Saddi said cooperation between the three countries was essential to rebuilding Lebanon’s energy sector on more sustainable and efficient foundations. He described the electricity interconnection project as highly important and said Lebanon was working to complete it as quickly as possible. The latest natural gas supply arrangement follows a January 2026 agreement signed by Jordan and Syria in Damascus for the sale and purchase of natural gas to supply Syria through Jordanian territory, supporting electricity generation and helping ease energy shortages. Syria has since begun receiving gas under that agreement, with supplies reaching around 4 million cubic metres per day.

The agreement is part of a contract valued at around $800 million annually, intended to secure stable energy supplies and improve services. Jordan has previously said it is ready to supply energy to Syria and Lebanon once the necessary technical arrangements are completed, particularly the rehabilitation of Syrian networks damaged during the war. Regional electricity interconnection efforts began as far back as 2001 but were suspended in 2012. Attempts to restore the links resumed in 2022 through agreements intended to supply electricity and gas to Lebanon via Syria, although financing challenges delayed implementation.

Details of the development of the three gas pipeline projects were presented by OQGN to review its financial and operational performance for the first half of 2026. The company was represented by Eng. Mansoor Ali Al Abdali, Chief Executive Officer; Eng. Saif Al Hosni, Chief Business Development & Commercial Officer; and Sultan Al Balushi, Acting Chief Financial Officer. The projects are being developed as part of an OMR 294 million capital expenditure programme allocated for infrastructure growth during the current Price Control period.

Fahud–Sohar and Budoor–Tayseer projects progress

The largest development currently under construction is the 193-km, 42-inch Fahud–Sohar Loop Line. The capacity-expansion project is intended to debottleneck the northern gas network while addressing increasing industrial demand in Suhar and Ibri. The line will extend from the Fahud Compressor Station towards Suhar, following a route parallel to the existing Fahud–Suhar pipelines. Once completed, it is expected to provide around 11 million standard cubic metres per day (MMSCMD) of additional transmission capacity to the northern network.

OQGN is also progressing with the 31-km, 14-inch Budoor–Tayseer pipeline. Designed as a gas-supply integration project, the pipeline will connect the Budoor Tayseer Gas Plant with OQGN’s national transmission network. The development is expected to add approximately 2 MMSCMD of transmission capacity.

Duqm Growth pipeline to support expanding demand

In southeast Oman, OQGN is advancing the 13-km, 32-inch Duqm Growth pipeline. The project is designed to increase gas supplies to the Port of Duqm area and support the expanding cluster of industries that require natural gas.

With the three gas pipeline projects forming part of the company’s infrastructure-growth programme, OQGN expects its overall pipeline network to reach 4,717 km by 2027, compared with 4,368 km at the end of 2025. Total network capacity is projected to increase to 80.3 billion standard cubic metres (bn scm), up from 76.3 bn scm in 2025. Gas transportation volumes are also forecast to reach 47.1 bn scm, compared with 42.4 bn scm in 2025.

Alongside measures to secure oil supplies, the plan includes efforts to promote decarbonization and improve Japan’s energy self-sufficiency by expanding renewable and nuclear power. Takaichi said the government will confront changes in the global energy landscape head-on and protect the lives of the people and their economic activities. The announcement follows Takaichi’s decision in June 2026 to develop a plan for a more solid energy structure by the end of August 2026. She had also directed industry minister Ryosei Akazawa, who doubles as minister in charge of green transformation, to move forward with preparations.

Reducing Dependence on the Strait of Hormuz

Japan’s reliance on Middle Eastern crude imports has made the country particularly vulnerable to disruption around the Strait of Hormuz. The vital oil-shipping route has been effectively closed following the U.S.-Israeli war against Iran since late February, dealing a heavy blow to the resource-poor Asian nation. Under the new plan, the government intends to encourage supply diversification by establishing a system that allows oil wholesalers and trading firms to share the additional costs associated with importing crude from regions other than the Middle East. A levy collected from wholesalers and trading companies will finance subsidies for businesses importing oil that does not pass the Strait of Hormuz.

Tokyo also plans to work with Middle Eastern countries on pipeline construction designed to reduce dependence on transportation routes through the strait. The cooperation will be pursued through the government-backed Japan Organization for Metals and Energy Security, forming another part of the effort to strengthen Japan’s energy supply structure.

Naphtha Stockpiling and Supply Chain Challenges

The policy package also calls for stockpiling oil-derived naphtha, which is widely used as a raw material in plastics, packaging materials and printing ink solvent production. A shortage of naphtha has recently disrupted the business activities of many Japanese firms. However, because naphtha is highly volatile and difficult to store over long periods, the government is likely to address the requirement by securing additional crude oil that can be allocated for naphtha refining needs during a shortage or by storing it as solid petrochemical derivatives.

While the Japanese government has stated that crude oil supplies are expected to remain stable for the time being, the country still faces challenges in reviewing a supply chain that is heavily dependent on the Middle East and dealing with the higher costs associated with alternative procurement.