Idemitsu announces closure of Tokuyama refinery by 2014

Idemitsu Kosan Co., Japan’s third-largest oil company, said it will shut down its 120,000 barrel per day (bpd) Tokuyama refinery in western Japan by March 2014, rather than upgrade the plant to meet government regulations. Japan’s Ministry of Economy, Trade and Industry (METI) regulations call for refiners to build more complex units at simple plants to process heavy oil or to shut them down. The company’s decision will reduce Idemitsu’s refining capacity in Japan by nearly a fifth from the existing 640,000 bpd total from four plants. However, the company will continue petrochemical operations at the plant and use the site as a fuel shipment hub. Idemitsu plans to import naphtha from international markets to feed the two petrochemical crackers at the plant. The refinery is mostly focused on the domestic market but also exports diesel fuel. Japan’s refining industry is consolidating as demand for gasoline and other oil products falls with a shrinking population and a shift toward fuel-efficient cars. (November 1,2011)