- TOKYO: Japan’s oil product output will recover to 3.4 million barrels per day (bpd) by the end of March, a level above domestic demand, as idled refineries resume operation, but disruptions in distribution routes remain as a major bottleneck, an industry body said.
Akihiko Tembo, chairman of the Petroleum Association of Japan, told reporters in Tokyo that last week’s devastating earthquake cut Japan’s output by more than 33 percent to 2.7 million tons, down from four million tons before the quake.
Oil product output is expected to rise by 500,000 bpd this week, he said.
Backing up his comments, two of the three refineries near Tokyo which had temporarily closed after the quake said they had restarted.
Exxon Mobil group refiner TonenGeneral Sekiyu KK said late on Thursday it restarted its 335,000 barrels per day Kawasaki refinery, south of Tokyo, and expects the unit to reach full operation on Friday.
On Wednesday, Kyokuto Petroleum Industries said it has restarted its 175,000 bpd Chiba refinery, east of Tokyo.
JX Nippon Oil & Energy Corp, an oil refining unit of JX Holdings and Japan’s No.1 refiner, has said it aims to restart its 270,000 bpd Negishi refinery near Tokyo as early as next week.
The resumption of operations at these three plants would leave three badly damaged ones — JX’s 145,000 bpd Sendai refinery and 252,000 bpd Kashima refinery, and Cosmo Oil’s 220,000 bpd Chiba refinery — yet to be closed.
Japan’s oil production capacity is now at 3.11 million bpd, down 30 percent from 4.51 million bpd before the quake, PAJ’s Tembo said.
“We have enough stocks, but distribution is the biggest problem as hundreds of tanker lorries were washed away by the tsunami and many gasoline station operators were killed,” Tembo told a news conference.
Tembo, who is also chairman of Idemitsu Kosan Co , Japan’s third-biggest refiner, said it should be possible to secure supplies to meet domestic demand, which stood at 3.3 million bpd.