9 May 2007 - 09:21
  • News Code: 104182

LOS ANGELES-- Japan will increase petroleum products exports by as much as 50% this year due to a decline—for the fourth year running—in domestic demand for fuel oil. The demand drop was caused by the increased use of natural gas by industry, as well as sales of hybrid-electric cars and other low-consumption products.

Nippon Oil Corp. will try to double its petroleum exports to 2.35 million kl, as well as increase contract production for a major Chinese oil firm by 20% to 2.2 million kl. That will give Nippon overall exports of 4.55 million kl, a 50% increase. Cosmo Oil Co. plans to raise its exports by 40% to 1.44 million kl/year, largely by selling jet fuel and diesel in the US market.

 

Meanwhile, Taiyo Oil Co. and other midsize oil distributors reportedly will upgrade or create export facilities to step up their overseas shipments. Taiyo will upgrade the ship-loading pumps at its port facilities, while Mitsui Oil & Gas Co. will set up facilities to begin shipping jet fuel by June.

 

Last December, Taiyo, which refines petroleum products from light crude, announced plans to spend ¥50 billion to install cracking equipment for heavy oil at its Ehime Prefecture refinery (OGJ Online, Dec. 4, 2006).

 

In January Nippon and South Korean refiner SK Corp. said they would form a 10-year capital and business alliance under which each firm will spend ¥12 billion to purchase an initial 1% stake in the other (OGJ Online, Jan. 23, 2007).

 

PIN/OGJ.COM

News Code 104182

Your Comment

You are replying to: .
6 + 5 =