Japan’s Base Oil Output Down in 2015


Base oil production in Japan fell 3.4 percent in 2015, part of a continuing trend of shrinking demand for petroleum products by Asias third-largest economy. Meanwhile, major Japanese lubricant blenders have been expanding plants and sales overseas.

According to Japanese energy group, JX Holdings third quarter financial report released this month, the company forecast for the Asian lubricant market to grow at a rate of 3 percent per year, reaching a total volume of more than 20 million tons in 2020. We will continue to expand our base oil API group III in Korea and enhance our overseas plants and marketing channels, said the report.

According to major Japanese lubricant blender, Idemitsu Kosan Co.s latest 2015 third quarter, financial results released this month, the company recorded an increase of 6 percent in total lubricant sales, including overseas sales, to 742,409 metric tons.

The company has been expanding overseas as it aims to increase its share of overseas lubricant sales to 50 percent of its total targeted sales of 1.1 million tons per year. In October last year, the company announced an increase of production capacity at its plant Tianjin from 50,000 tons per year to 108,000 t/y.

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