Japan’s JX Holdings may purchase oil from South Korea

JX Holdings shut down its Sendai, Kashima and Negishi refineries, following the March 11 Magnitude 9 earthquake and tsunami. These refineries have a combined operating capacity of 667,500 barrels per day. To meet the company’s need for additional fuel, JX Holdings is considering buying oil products from South Korea. South Korea already supplies 91% of Japan’s gasoline imports, 93% of its diesel imports and 86% of its kerosene imports. In a statement to investors, UBS analysts said, “South Korean refiners are best positioned to help Japan meet any shortages of oil products.” Before the company decides to import fuel, it will try and get its Negishi refinery back online as it is the closest refinery to Tokyo, an official of the company said. (March 15, 2011)