Japanese refineries will reduce production

Japanese refineries may suspend operations again. It is reported by Enkorr.

Businesses, despite signs of recovery from the coronavirus pandemic, have suffered not only from lower domestic fuel consumption, but also from competition from newer refineries in China and South Korea that dominate other markets.

Idemitsu Kosan, Japan’s oil refinery, is the second largest, says it expects a 30% drop in sales over the course of the year until March 2021.

Tsutomu Sugimori, president of Japan's largest oil and gas corporation JXTG Holdings, said last week that the company was considering consolidating its refineries.

“We will adjust our production capacity to match declining demand,” he said.

XTG, which accounts for about half of the market, has already decided to close Osaka refinery.

Oil refining in Japan peaked in 1982, reaching 5.6 million barrels per day. Now this figure is about 3.4 million bpd (mainly at old refineries) and it is estimated that by the end of the decade it could drop to 2.3 million bpd.

It was previously reported that Kazakhstan increased oil exports to China.

Tags: oil, hydrocarbon production, Азия, добыча нефти, коронавирус, Oil refinery plant, foreign affairs, stocks, oil products, quarantine, pandemia, oil pipeline, COVID-19, decline in production, oil companies, oil reserves, crisis

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