Japan's biggest oil refiner Eneos Corp has secured substitute crude supplies through around August, mainly from the US, its executive said on Thursday.
Senior Vice President Yasunori Yazaki said the company expects a steady flow of US crude via very large crude carriers from late this month.
"We see this trend as the new normal and if the Middle East conflict continues, expect to maintain this approach going forward," Yazaki told reporters.
He said crude procurement from Alaska or Canada is also possible if economically viable and aligned with supply-demand conditions.
The company, which holds a 50 per cent share of Japan's petroleum products market, also procured crude from Azerbaijan this week. A crude oil tanker managed by Eneos has just passed through the Strait of Hormuz.
Tomohide Miyata, CEO of Eneos Holdings, Eneos Corp's parent, said the energy company is diversifying supply sources, while working with the Japanese Government to procure Middle East crude via routes that avoid the Persian Gulf.
Miyata said the company is preparing for ship-to-ship transfers using group vessels outside the gulf to transport cargoes to Japan, as some shipping firms are willing to handle cargoes from the Gulf of Oman and the Red Sea.
Discussions have begun on whether to upgrade refinery equipment to process a wider range of crude grades, in consultation with the government, Miyata said.
Excluding the impact of the Iran crisis and scheduled maintenance, the refinery run rate is expected to increase in fiscal 2026 toward the fiscal 2027 target of 90 per cent, from an average 80 per cent in fiscal 2025, Miyata said.
Eneos will buy Chevron's 50 per cent stake in Singapore Refining Company and other assets in Southeast Asia and Australia for nearly $2.2 billion, in its first refining foray outside Japan.
(Reporting by Yuka Obayashi; editing by Barbara Lewis)
