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Energy

Japan's Idemitsu to slash oil refining capacity as cars go electric

Plan to shut down Yamaguchi refinery to be announced today, Nikkei learns

Idemitsu's Yamaguchi refinery has a crude oil processing capacity of 120,000 barrels per day, accounting for about 13% of the group's total capacity.

TOKYO -- Idemitsu Kosan, Japan's second-largest oil wholesaler, has decided to shut down its refinery in Yamaguchi Prefecture by the end of March 2024, as the rise of more fuel-efficient vehicles cuts demand for gasoline, Nikkei has learned.

The Yamaguchi refinery accounts for 13% of Idemitsu's total refining capacity. An announcement of the planned closure has been set for the afternoon of June 14. The company has concluded that gasoline demand will continue to decline as EVs become more popular.

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