Insight
Another refinery closure in Japan - more to come?
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Report summary
In January 2022, ENEOS announced that Wakayama refinery will be permanently shut by October 2023. The announcement came after the closure of Osaka refinery in October 2020 and the expected downsizing of CDU capacity at Negishi refinery by October 2022. It shows the challenging environment in the refining industry in Japan. In this Insight, we discuss the Wakayama refinery's net cash margin performance and share our views on the implications of the closures on Japan's oil product balances.
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