TOKYO (ICIS)--Cosmo Oil plans to permanently close its 140,000 bbl/day Sakaide refinery in Kagawa prefecture in July 2013 as part of its restructuring scheme, citing Japan’s falling petroleum demand, the Japanese refiner said on Tuesday.
“In addition, taking into consideration that new refineries are being built in the Middle East and the Asian region, which will boost the supply capacity of petroleum products, we have concluded that restructuring of our supply system through a consolidation of the refineries is a must,” Cosmo Oil said in a statement.
The company partly attributed the decline in the country’s petroleum demand to the emergence of next-generation cars, a dwindling birthrate and an aging population in Japan.
After the closure of the refinery, the Sakaide site will be used as an oil terminal that will be a logistics base for western Japan, the company said.
Cosmo Oil’s three other refineries – a 220,000 bbl/day unit in Chiba, a 175,000 bbl/day unit in Yokkaichi and a 100,000 bbl/day in Sakai – will continue to operate, it said.