22 April 2010 14:14 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese refiner Idemitsu Kosan announced on Thursday that it plans to reduce its crude refining capacity by 100,000 bbl/day, or around 16%, by April 2013 in response to falling domestic demand for oil products.
The company declined to give specific details as to which of its facilities would be permanently closed. Idemitsu is the third-largest refiner in ?xml:namespace>
In a further move to counter the impact of slumping domestic demand, Idemitsu also planned to increase oil exports to around 3m kilolitres per year (approximately 18.9m bbls) by April 2012, more than double the volume exported in the year to April 2010.
The company also said that it would invest some Y370bn (approximately $4bn) over the next three years, with much of the focus on energy exploration.
The move to cut capacity by Idemitsu comes after an announcement in late March that the company plans to shut down three of its refineries during the second half of 2010 in response to weak market conditions.
The impact of the global recession together with an aging population, more energy-efficient transportation systems and a switch to the use of gas and electricity for heating and power has served to cut
Rival Japanese refiners Nippon Oil, Japan Energy, Showa Shell and Cosmo have also announced plans to cut refining capacity in the coming years.
(1 kilolitre = 6.29 bbl)
($1 = Y93.09)
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