JERA Establishes Subsidiary for Japan Oil Reserve Business Transfer

JERA has established a subsidiary for the planned transfer of its oil stockpiling business at four Japanese reserve bases; the JERA Group’s current operating contract runs through fiscal 2028.

JERA OIL STORAGE Co., Inc. was established Oct. 1 as a wholly owned subsidiary with capital of 100 million yen. JERA aims to strengthen safe and stable operations and ensure operational expertise is transferred and advanced through the new structure.

The four bases are Tomakomai-Tobu, Akita, Fukui and Shibushi. JERA Group companies currently operate them under contract with the Japan Organization for Metals and Energy Security (JOGMEC), Japan’s reserve agency.

JERA plans to reach an agreement on an absorption-type company split by the end of 2026. The oil stockpiling business is expected to transfer to the new company around April 2029. The current operating contract covers fiscal 2023 through fiscal 2028.

The announcement does not describe a change in ownership of Japan’s national oil reserves or a change in reserve volume. The subsidiary’s establishment sets up the planned transfer; it does not mean the new company has already taken over operations.

Japan imported about 2.36 million barrels of crude oil per day in 2024. About 95.1% came from the Middle East, and imported crude made up 99.7% of the country’s crude supply.

In March 2026, International Energy Agency members agreed to make 400 million barrels of emergency oil stocks available amid disruptions linked to conflict in the Middle East. JERA did not cite those disruptions as a reason for establishing the subsidiary.