Japan’s ENEOS to close Wakayama refinery in October 2023

SINGAPORE (ICIS)–ENEOS Corp is planning to cease operations at its 127,500 bbl/day Wakayama refinery in October 2023, the Japanese producer said on Tuesday.

“The rapid reduction in demand due to the recent spread of COVID-19 besides structural domestic demand decline for petroleum products and severe international competition mainly in Asia—were considered comprehensively [for the closure],” the company said in a statement.

“There was a pressing need to optimise the manufacturing of refineries and plants as well as the supply network for petroleum products. ENEOS therefore decided to terminate all functions of the Wakayama refinery,” it said.

ENEOS produces close to 355,000 tonnes/year of Group I base oils in Wakayama, according to the ICIS Supply & Demand Database. The company also produces benzene, toluene and mixed xylenes (MX) at the site.

ENEOS currently operates 10 refineries in Japan, with an overall 1.87m bbl/day of crude processing capacity.