Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 28 -- Japan's Nippon Oil Corp., facing reduced domestic demand for oil products, plans to increase exports and to begin mass-producing ethyl tertiary butyl ether at yearend 2009.
The petroleum wholesaler will invest about ¥2 billion at its Negishi refinery in Yokohama to build a facility capable of turning out 100,000 kl/year of ETBE. Demand for ETBE in Japan is expected to reach 840,000 kl in 2010, based on projections for sales of biofuel.
Japan currently imports all ETBE used for biofuel, and domestic production will help reduce transport costs and carbon dioxide emissions. Nippon Oil aims to purchase bioethanol from domestic sources in Hokkaido.
Meanwhile, Nippon Oil, aiming to offset the fall in demand for oil products in the domestic market, will nearly double its oil product exports to 2.7 million kl in the fiscal year started in April.
The refiner will increase its export capacity to 260,000 b/d from 230,000 b/d by the fiscal year ending March 2011, said Nippon Oil Pres. Shinji Nishio.
Shinji said most of the planned exports, mainly kerosine, jet fuel, and gas oil, will be sold to oil traders in the Asia Pacific market.
The drop in demand for oil products in Japan in recent years is due to improved energy efficient technology and diversification to other energy sources.
Contact Eric Watkins at [email protected].
