Japan marketers to swap supplies

Nippon Oil Co. and Japan Energy Corp. expect to save a combined ¥400 million/year on distribution costs through a cross-supply agreement to take effect in October.

July 6, 1998

Nippon Oil Co. and Japan Energy Corp. expect to save a combined ¥400 million/year on distribution costs through a cross-supply agreement to take effect in October.

Nippon Oil will supply Japan Energy service stations on the northern island of Hokkaido with products processed at its Muroran refinery, while Japan Energy will provide the same group of products to Nippon Oil stations in north-central Japan (Kanto) from an affiliated facility in Ibaraki Prefecture. Items covered under the exchange program include regular and high-octane gasoline, kerosine, diesel oil, and fuel oil. Each company will provide the other a total of about 360 million l./year. Nippon Oil currently supplies its northern Kanto operations from its Yokohama refinery, while Japan Energy supplies stations in Hokkaido from the Ibaraki affiliate. Nippon Oil already participates in similar arrangements with Idemitsu Kosan Co. and Mitsubishi Oil Co.