Rising costs are weighing on Japan’s refiners, as they strive to adapt to the country’s changing oil demand profile and regulatory overhaul. Cosmo Oil’s 28 August decision to permanently close the 140,000 b/d Sakaide refinery by July next year is as much about cost-cutting as adjusting to slowing domestic oil demand because of Japan’s ageing population and increased energy efficiency. The closure will save Cosmo about 10bn yen/yr ($127mn/yr) while cutting its refining capacity by 22pc to 495,000 b/d.
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