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RE: Japan to shut 14pct refinery capacity in Q2 -survey

Home Forums Refining Community Refinery News Japan to shut 14pct refinery capacity in Q2 -survey RE: Japan to shut 14pct refinery capacity in Q2 -survey

#7470

Charles Randall
Participant

Japan is shutting down 14% of its refinery capacity in 2Q07 and will decrease crude inventory and increase gasoline imports (not as much as required last year due fires at 2 of its major refineries).  This combination of pushing more crude on the market and consuming more imports should improve refinery margins for the non-integrated oil companies like Valero.  But Japan has excess capacity that is under utilized most of the time – it was once thought that perhaps a tolling arrangement might develop between China and Japan that could supply China or other Asian sector product demand while new world scale refineries were being built to replace small outdated ones.

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