Nippon Oil to shut Toyama refinery permanently

10 April 2008 11:22  [Source: ICIS news]

SINGAPORE (ICIS news)--Nippon Oil Corp has decided to shut down its 60,000 bbls/day refinery in Toyama permanently, a company spokesman said on Thursday.

“The current domestic demand for oil has been decreasing due to the increasing oil prices. This has made the business environment very tough, especially for the Toyama refinery which produces mainly fuel oil,” a statement released by the company stated, in Japanese.

“The current market situation is not very forgiving for heavy oil products such as fuel oil. Ideal products now will be gasoline and gas oils, which are in the light oil products range,” the spokesperson added.

The 40-year-old Toyama refinery, run by Nippon Oil's subsidiary Nihonkai Oil, would be shut down in March 2009, after which it would be converted into an oil terminal, the spokesperson said.

Nippon Oil has seven refineries in the country, producing up to 242,000 bbl/day of gasoline.

By: Brian Myung
65 6780 4359

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