Japan: refinery closures continue

On January 22, 2024, Japanese petroleum company Idemitsu Kosan announced that it would stop the 120,000 barrels/day (b/d) Yamaguchi refinery’s operation by March 2024. The refinery will be converted into a petroleum storage terminal. By the 2030s, it will be a hub for carbon-free energy sources, including solar power and hydrogen.

In 2022, the company decided to reduce its refining capacity amid the continuous decline in Japan’s demand for refined petroleum products. Japan’s aging and shrinking population, and increased appetite for lower-carbon energy sources to meet the net-zero carbon emissions target, have weakened the demand for petroleum products.

Before this, Eneos Corporation closed the 120,000 b/d Negishi refinery in Oc