JX Nippon Oil looks at closing Muroran refinery

Japan’s JX Nippon Oil & Energy Corp. is looking at closing its Muroran refinery in Hokkaido which represents 13% of JX Holding Inc.’s total capacity. The Muroran refinery has a capacity of 180,000 barrels per day (bpd). JX has drawn up a plan to lower its total daily oil refining capacity by 200,000 bpd by fiscal year 2013, from the current 1.4 million bpd.  A 2010 regulation issued by the Ministry of Economy, Trade and Industry (METI) effectively requires refiners to lower their capacities by 25% by fiscal year 2013, as fuel oil sales in Japan have dropped by 20% over the last 10 years. Other refiners are expected to follow JX Nippon Oil’s move. The  March earthquake and tsunami in Japan which knocked out 30% of the country’s refining capacity had temporarily disrupted this plan. (June 10, 2011)