Key facts
- Japan relies on imports for over 60% of its naphtha, with a significant portion passing through the Strait of Hormuz.
- The Strait of Hormuz has been effectively closed since late February 2026, disrupting supply chains.
- Kawasaki Heavy Industries is proposing a technology to produce naphtha using hydrogen as feedstock.
- This technology utilizes Fischer-Tropsch synthesis, converting natural gas-derived hydrogen into hydrocarbons.
- Kawasaki has prior experience with a commercial gas-to-gasoline plant in Turkmenistan.
Amid ongoing disruptions to the Strait of Hormuz, which have significantly impacted Japan's naphtha supply, Kawasaki Heavy Industries has proposed an alternative production method. The company is marketing technology that uses hydrogen as a feedstock to create naphtha, a crucial component for plastics and other petrochemical products. This proposal aims to reduce Japan's reliance on crude oil imports and the volatile shipping routes through the Middle East.
Japan imports more than 60% of its naphtha, with approximately 70% of these imports historically flowing through the Strait of Hormuz. The de facto closure of this vital waterway since late February 2026 has led to price spikes and supply chain concerns, exacerbated by Japan's limited naphtha reserves of only about 20 days.
At a May 12, 2026, earnings briefing, Kawasaki Heavy Industries President Yasuhiko Hashimoto highlighted the potential of producing naphtha from hydrogen, noting that many still do not realize this is possible. The company argues that using hydrogen derived from natural gas allows for diversification of procurement sources beyond the Middle East, tapping into regions like the United States, Australia, and Russia.
This is not a theoretical concept for Kawasaki. The company has already successfully built and operates a commercial-scale gas-to-gasoline (GTG) plant in Ovadan-Depe, Turkmenistan, for the state-owned company Turkmengaz. Completed in June 2019, this plant utilizes Denmark's Topsoe-licensed TIGAS process, which converts natural gas into methanol and then into gasoline. The underlying principle involves Fischer-Tropsch synthesis, where carbon monoxide and hydrogen react to form hydrocarbon chains of varying lengths, allowing for the synthesis of naphtha without the direct use of crude oil.