Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:34-9:47 a.m.
Tuesday, June 9, 2026
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Replacement of nuclear power reactors

Q: I would like to ask you about one point. The other day, the Ministry of Economy, Trade and Industry (METI) presented a draft target regarding the number of nuclear power reactors to be replaced. Could you please share your views on this?
I am also aware that there are concerns about the safety of nuclear power plants, as well as the need to gain understanding from host communities and issues related to final disposal. Could you also explain how the government plans to address these issues?

A: I believe that providing the government’s nuclear power outlook is crucial as the supply capacity of the nation’s existing nuclear power plants is set to decline significantly from the 2040s onward. The outlook will enhance future predictability in ensuring the long-term use of nuclear power, which contributes to energy security and offers significant decarbonization benefits. It will also help maintain and strengthen the nuclear supply chain and workforce. Specifically, based on certain assumptions, it is estimated that the nuclear power supply will fall short by between 2.2 and 5.5 gigawatts in the 2040s (equivalent to two to five reactors) and by between 12.7 and 16 gigawatts (equivalent to 11–14 reactors) in the 2050s. Given this, it is necessary to maximize the use of existing reactors while rebuilding next-generation innovative reactors. Furthermore, ensuring safety and gaining the understanding of local communities are absolute prerequisites for utilizing nuclear power and replacing aging reactors with innovative, next-generation ones. As I have repeatedly mentioned, our policy is to proceed with the replacement only if the Nuclear Regulation Authority, which operates with a high degree of independence, certifies that a facility complies with the new regulatory standards. Ensuring safety and securing local understanding are our top priorities. The government will continue to take the lead in gaining the support of the host municipalities and other relevant stakeholders.

Bottlenecks in the distribution of naphtha-derived petroleum products

Q: I would like to ask you about “bottlenecks” in the distribution of naphtha. I have been covering the chemical industry for about six years now. My understanding is that the solution to these bottlenecks is to significantly increase the operating rate of upstream naphtha cracking facilities. If production is increased upstream, the midstream and downstream are flooded with products, eventually flowing through the supply chain. I believe this represents the common sense, fundamental situation of the petrochemical industry. Put simply, the upstream industry cannot increase its operating rates because there is not sufficient naphtha. If products do not flow down the supply chain, the businesses in the midstream and downstream sectors, which are mostly small and medium-sized, will retain them, causing bottlenecks. In light of the fact that it is not possible to increase the operating rates, are you considering sending a message to the petrochemical and related industries, calling for cooperation from all tiers of the supply chain to cope with the shortage of naphtha we are facing? In addition, the Prime Minister has stated that there is a sufficient supply of naphtha. I think this messaging seems to be having a rather odd effect on the situation as a whole. Would you suggest to the Prime Minister that there is an overall shortage of naphtha, and ask her to request the cooperation of the distribution sector if necessary?

A: I completely disagree with your assessment. I must say your perception of the facts is incorrect. It is essential that you fully understand the issues at hand. You mentioned that if we simply increase the flow of naphtha from upstream, products would flow downstream and meet demand. I think this view lacks a broader perspective. To put it simply, even if the country maintains a constant inventory, if everyone were to place 10 times the usual amount of orders, how many times the usual amount do you think would be needed to meet that demand? Is it realistic to increase supply tenfold? I think even a few multiples is completely unrealistic. Your assessment skipped over a lot of details, and I personally think there is a problem with labeling such an unrealistic statement as “common sense.” Speaking of naphtha, it is common knowledge that, when crude oil is refined, naphtha, gasoline and diesel are produced in fixed proportions of 10%, 29% and 24%, respectively. Increasing naphtha production involves an increase in the output of gasoline and diesel at the fixed proportions. Where would the wholesale refiners store all of that extra gasoline and diesel? If production were to increase by several multiples, there simply wouldn’t be enough tanks in the country to store these products.

Without considering the actual operations, you claim that it is “common sense” that increasing the upstream supply alone will resolve bottlenecks, a view I am skeptical of. I think it would be better to take a more realistic perspective. Since this is a country that guarantees freedom of speech, I won't be commenting on every single remark made by the media. However, simply releasing large amounts of naphtha from upstream entails tremendous efforts by businesses in the supply chain. I believe your observation is utterly misguided. With that being said, I reiterate that we have secured the amount of crude oil and petroleum products that is necessary for Japan as a whole. We have three options to ensure supply. Regarding naphtha, as I mentioned earlier, refining crude oil yields about 10 % naphtha. This figure may fluctuate by about 1 or 2 percent depending on the refining method, but it does not vary significantly. In addition, we can import naphtha from overseas, and draw down domestic inventories, known as midstream or intermediate inventories. Since the amount of crude oil necessary for Japan is currently secured and all three naphtha supply sources are available, our policy is to maintain normal refining operations while drawing down inventories and increasing imports as necessary. Although naphtha production has declined since March due to a concentration of scheduled maintenance, production is expected to gradually recover, at least by around summer. Until then, we can draw down the midstream inventories and increase imports. Since alternative procurement has proved successful, the depletion of the equivalent of 1.8 months of buffer stock midstream inventories has been minimized to just 0.1 months’ equivalent. To reiterate, my priority as Minister is to continue to convey the message that supplies are sufficient, because that is the fact. I will continue to provide fact-based, accurate information to prevent the public from becoming even more anxious or from panic-buying based on misinformation suggesting that supplies are insufficient or that naphtha-derived products will soon be completely unavailable. If any of my remarks were to lead people to believe, contrary to the facts, that there is an overall shortage, hoarding would also worsen. Therefore, as the competent minister, I am taking responsible action to prevent that from happening. In addition, there is one more point I would like to mention. As I said earlier, we have repeatedly requested cooperation regarding stable supply throughout the chemical industry. Specifically, on March 30, April 3, and April 13, we urged companies to consult promptly with METI or relevant businesses if they encounter issues with raw material procurement, rather than immediately curtailing production. In line with the requests, eight industry associations representing midstream and downstream sectors, including paints, thinners, printing inks, PVC pipes, insulation materials, and prefabricated bathrooms, announced at the end of May that current supply levels are stable and increasing, and that they expect to maintain a steady supply going forward. We will continue to work closely with the relevant industries and do our utmost to address supply imbalances and resolve bottlenecks in distribution.