Japan's crude oil processing volume may be reduced by 18% in October

According to Dow Jones News, September 8, due to routine inspections, at least 18% of crude oil refining capacity will be reduced. In October, crude oil processing volume in Japan may be less than in September.

Most Japanese smelters plan to maintain their overhaul and fall production plans, and it is expected that demand for gasoline and diesel will decrease when temperatures drop. The company does not plan to increase its production of kerosene for replenishing stocks before the arrival of winter, because users switch from fuel to electric heaters, so demand will decline in the long run.

Although no refinery has yet announced the official production plan for October. However, JX Energy's reduction in crude oil processing volume should be much lower than that of most refineries because it plans to temporarily shut down 290,000 barrels/day of capacity for routine maintenance; it is located in western Japan at 115,000 barrels per day. The Osaka refinery was also split into a joint venture with PetroChina Co. (PTR, China Petroleum). JX Energy plans to permanently shut down its No. 2 crude oil distillation unit at the Negishi refinery in western Tokyo, Japan, as scheduled this month. A company spokesman declined to say whether the crude distillation unit at the Negishi refinery would be idle before the official shutdown.

Japan's Cosmo Petroleum, Showa Shell and Japan's Idemitsu Koji Co. Ltd. also plan to shut down the refinery, mostly for overhaul.

According to industry newspapers, TonenMobil Sekiyu KK of ExxonMobil’s Japan refining division will close its 170,000-barrel/day Wakayama refinery from mid-September to late October for regular maintenance.

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