What is the main strategic shift in Idemitsu's new medium-term plan compared to its previous energy transition strategy?

Idemitsu has shifted from a previous plan that aimed to cut fossil fuel assets and generate over 50% of profit from non-fossil fuel businesses by fiscal 2030, to a new fossil-fuel-focused plan investing 1.8 trillion yen ($11.4 billion), with 830 billion yen allocated specifically to strengthening existing fossil fuel businesses like fuel oil—scrapping earlier targets such as domestic refinery capacity reduction.

Why did Idemitsu abandon its prior decarbonization-oriented strategy and refocus on fossil fuels?

According to President Noriaki Sakai, the shift reflects revised assumptions about long-term fossil fuel demand, as the previous plan was based on an expectation of declining fossil fuel consumption—a view now undermined by increasing uncertainty, especially after the Iran war beginning in February and the effective closure of the Strait of Hormuz, which disrupted Japan’s historically heavy reliance (95%) on Middle Eastern crude imports and forced urgent diversification of supply routes.

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