TOKYO: Japan may cut crude refining capacity by as much as 10 percent, or 400,000 barrels per day (bpd), under a second round of reductions to be forced on the country's refiners amid forecasts for a continuing decline in oil product demand.
Cuts mandated by the government in 2010 pushed refineries to axe nearly 1 million bpd by the end of March, but the industry ministry thinks Japan will still have excess capacity, as demand for oil products is expected to fall by 7.8 percent by 2018, due to a declining population.
The ministry outlined proposals on Monday that will force more cuts if adopted. The proposals have been released for public comment and refiners will need to present their plans on capacity reductions by Oct. 31 if the ministry's order is confirmed.
Comments
Comments are closed for this article.