January 8, 2010 at 4:00 pm #2815
Cosmo Oil to Complete Coker Unit Construction by Mid-February
By Yuji Okada
Jan. 8, 2010 (Bloomberg) — Cosmo Oil Co., a Japanese refiner partly owned by the government of Abu Dhabi, plans to complete the construction of a coker unit at its Sakai refinery in western Japan by Feb. 18, a company official said.
The refiner aims to begin commercial operation at the 25,000 barrel-a-day coker unit and a 42,000 barrel-a-day residue desulfurization unit at the 80,000 barrel-a-day refinery in April, said the official, who declined to be identified because of company policy.
Cosmo Oil invested about 100 billion yen ($1.1 billion) to build the two secondary units to produce middle distillates out of fuel oil as demand for the fuel used in power plants is falling faster than other oil products.
Fuel-oil sales in the country dropped 35 percent in November from a year earlier, according to the Ministry of Economy, Trade and Industry. This compares with jet fuel sales increase of 3.8 percent. Gasoil sales slid 3.5 percent in the same month.
To contact the reporter on this story: Yuji Okada in Tokyo at firstname.lastname@example.org.
Last Updated: January 8, 2010 03:00 EST
January 8, 2010 at 4:01 pm #5861
Here is Update from Bloomberg on Japan Cosmo Sakai Refinery 25 MBD coker addition project (and 80 MBD Resid HDS) that gives Feb 18, 2010 as completion date. This is online with the estimate from 2006 news release when the construction phase began.
The plant will now be able to switch from more expensive light MidEast crudes (Abu Dahbi) to the cheaper heavier crudes there (Saudi or Kuwait). Cosmo owns 3 other refineries in Japan but this will be their first coker.
Cosmo expansion runs counter to a competitor – Nippon Oil which plans to shut-in nearly 200MBD of capacity in 2011 (at 3 of its 7 refineries that total 1.3 million BPD capacity) in Japan.
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