PetroChina, JX Energy ink cooperation deal on Osaka refinery

JX Nikko Nisseki Energy Group, the oil refining unit of Japan’s JX Holdings Inc., said it has signed an agreement with PetroChina to set up a joint venture (JV) to run JX Energy’s 115,000-barrel-a-day Osaka refinery. JX Energy plans to form the JV on October 1 and export most of the refined products to China. PetroChina is likely to swap the refinery’s gasoline, which is difficult to sell in overseas markets other than South Korea due to specification differences, for JX’s other more marketable oil products, said a JX Energy spokesman. The joint venture will export most of its refined products to China and other Asian countries where oil demand is rising due to rapid economic growth. JX Energy will hold a 51% stake in the JV, while PetroChina will own the remaining 49%. (July 1, 2010)