Japan Power Firms to Share Fuel amid Middle East Tensions

Tokyo, Aug. 5 (Jiji Press)--Japanese power utilities are preparing a fuel-sharing arrangement among them in case of emergencies such as a blockade of the Strait of Hormuz off Iran, amid heightening tensions in the Middle East, an industry executive has revealed. The power industry is also considering a system to share liquefied natural gas and crude oil with gas companies and oil distributors, Shigeki Iwane, chairman of the Federation of Electric Power Companies of Japan, said in a recent interview. The move followed a series of recent incidents in the Strait of Hormuz, including attacks on Japanese-operated and other oil tankers, as well as the seizure by Iran of foreign tankers. The strait is a key sea lane between the Persian Gulf and the Gulf of Oman, used for the passage of over 80 pct and about 20 pct of oil and LNG imported by Japan, respectively. "In light of the continuing explosive situation there, we need to diversify our fuel sources further in the long run," Iwane, also president of Kansai Electric Power Co., said. Meanwhile, with an increasing number of nuclear plants in Japan now set to be decommissioned, the industry group head suggested a need for industrywide efforts to maintain nuclear energy experts and techniques. Last week, Tokyo Electric Power Company Holdings Inc. finalized its decision to decommission the Fukushima No. 2 nuclear plant, near the Fukushima No. 1 plant, where the country's worst nuclear accident was triggered by the March 2011 massive earthquake and tsunami. Iwane called for the sharing of know-how among power companies and for their collaboration with the government, nuclear reactor makers and others on the matter. END