< FYI – looks like Japan reg’s will make them add lot coking additions in Aisan sector. – CR Comment News article > UPDATE 1-Exxon Japan group mulls secondary unit investment
E Fri Aug 13, 2010 4:54am EDT
* Exxon Japan group considers action to meet govt regulations
* Cutting crude refining capacity is also one option -exec TOKYO Aug 13, 2010 (Reuters) – Exxon Mobil Japan group refiner TonenGeneral Sekiyu KK is considering investing in secondary refining units or cutting its refining capacity to meet government efficiency rules, the firm’s managing director W. J. Bogaty said on Friday.
The government regulations would require all oil refiners in Japan to raise the ratio of residue fluid catalytic cracking units or cokers to total crude refining capacity.
“We are undertaking a very deep and very rigorous review of all of our options,” Bogaty told reporters during the company’s first-half earnings announcement.
“Those options extend anywhere from making investments to closing our refinery capacity and to a combination of those things. That analysis is extremely complex and we will take our time.” Exxon Japan group, which has 836,000 barrels per day of total crude refining capacity, is the second-ranked refiner in Japan and currently has a residue cracking ratio of less than 10 percent, meaning that it would have to improve that ratio by 45 percent by the end of March 2014.
The nation’s refiners are required to submit their plans for improving the ratio to the Ministry of Economy, Trade and Industry by Oct. 31