〒100-0004 東京都千代田区大手町1-3-2 TEL（03）5218-2305（広報室） FAX（03）5218-2321 https://www.paj.gr.jp/ Pe今tr日のoleum Industry石油産業 in2020 Japan2020
Petroleum Association of Japan
Petroleum Association of Japan Keidanren Bldg., 3-2,1-chome, Ohtemachi, Chiyoda-ku, Tokyo 100-0004 Public Relations Tel. 81-3-5218-2305 Fax. 81-3-5218-2321 http://www.paj.gr.jp/ CONTENTS
はじめに ・・・・・・1 Preface はじめに 第 This brochure, Petroleum Industry in Japan, aims at providing 1章 国際石油情勢 ・・・・・・3 ～ 6 consumers and other stakeholders with the up-to-date information on 『今日の石油産業』は、消費者の皆様をはじめ広く関係各位に向けて、 the Japanese petroleum industry and the industry’s initiatives. This 2020石油産業の現状や業界の取り組みについて最新の情報をお知らせする edition has been published since 2015 edition. 第 In the past year, Japan had various natural disasters such as torrential ・・・・・・7 ～ 1 3 rainsために毎年作成しているものです。 in Northern Kyushu and the concentrated rainfalls in other areas in 2章 国内石油需給動向および流通販売 July 2020 caused extensive damage in many regions of Japan. The oil この1年においては、九州北部豪雨や令和2年7月豪雨などの様々な自然 industry, therefore, has endeavored to provide a stable supply of 第 petroleum災害で、日本各地で甚大な被害が発生し、石油業界として、国民生活に products that are essential to people's lives. In addition, prior to the landing of Typhoon 19 in October 2019, the industry disseminated 3章 石油産業に係わるエネルギー政策 ・・・・・・1 4 ～ 2 1 the必要不可欠な石油製品の安定供給に努めました。また、昨年10月の台風 information via Twitter, in the event of disaster, such as calling for full19号の際は、上陸に先立ち、Twitterで事前の満タン給油を呼びかける tank refueling of your car in advance. Currently, the new coronavirus, COVID-19, has had a tremendous 第 impact等の災害時の情報発信を実施しました。 on people’s life and the national economy, and there are 4 石油業界の環境安全対策 ・・・・・・2 2 ～ 2 7 concerns about the spread of new infections. Though the situation 章 is足元では、新型コロナウイルスによって、国民生活や国民経済に甚大な still unpredictable, the oil industry is thoroughly implementing measures影響が及び、新たな感染拡大が懸念されるなど、いまだに予断を許さない to prevent the spread of infection in the supply chain and 第 continues to work on the stable supply of petroleum products. 状況が続いていますが、石油業界として、サプライチェーンにおけるFurthermore, based on the “Long-term and Low-carbon Vision for the 5章 石油業界の緊急時・大規模災害対策 ・・・・・・2 8 ～ 3 3 Petroleum Industry”, even under the Corona Disaster, the oil industry is 感染拡大防止策を徹底し、引き続き、石油製品の安定供給に取り組んで taking on the challenge of realizing “Sustainable Oil” by strengthening itsいます。また、「石油産業の長期低炭素ビジョン」をもとに、コロナ禍で stable supply system, proactively addressing climate change issues, and improving the business environment to reinforce the international 巻末データ集 ・・・・・・3 4 ～ 4 4 competitivenessあっても、安定供給体制の強化、気候変動問題への積極的な取り組み、 of oil refineries. In consideration of readability, this brochure has been revised as そして製油所の国際競争力強化に向けた環境整備などを通じて appropriate to explain such trends in a concise manner. 「サステイナブルな石油」の実現に向けて挑戦しています。We hope this brochure will help to give you a sound understanding of ・・・・・・4 5 ～ 4 6 oil and the petroleum industry in Japan. 石油関連日誌 本誌ではその様な動向について読みやすさを考慮し、簡潔に説明するようDecember 2020
適宜改訂しています。本文中に掲載しきれなかった図表等は、巻末に
デ ータ集とし てまとめました の で あ わ せ てご 参 照ください 。
本誌が石油および石油産業に対する正しい理解の一助となれば幸いです。
2020年10月
1 2 CONTENTS
はじめに ・・・・・・1
はじめに 第 Preface ……………………………………………………………………………… 1 1章 国際石油情勢 ・・・・・・3 ～ 6 『今日の石油産業』は、消費者の皆様をはじめ広く関係各位に向けて、
石油産業の現状や業界の取り組みについて最新の情報をお知らせする 第Oil Supply and Demand, Petroleum Products Sales 1 and Distribution in Japan …………………………………………… 3 ために毎年作成しているものです。 2章 国内石油需給動向および流通販売 ・・・・・・7 ～ 1 3
この1年においては、九州北部豪雨や令和2年7月豪雨などの様々な自然 第 災害で、日本各地で甚大な被害が発生し、石油業界として、国民生活に Energy Policy especially in 2 Japanese Petroleum Sector ………………………………………… 10 3章 石油産業に係わるエネルギー政策 ・・・・・・1 4 ～ 2 1 必要不可欠な石油製品の安定供給に努めました。また、昨年10月の台風
19号の際は、上陸に先立ち、Twitterで事前の満タン給油を呼びかける 第 Safety and Environmental Measures of 等の災害時の情報発信を実施しました。 34章the Petroleum石油業界の環境安全対策 Industry ……………………………………………… ・・・・・・2 2 ～ 2 15 7 足元では、新型コロナウイルスによって、国民生活や国民経済に甚大な
影響が及び、新たな感染拡大が懸念されるなど、いまだに予断を許さない 第 Efforts to cope with Recent Disasters and ・・・・・・2 8 ～ 3 3 状況が続いていますが、石油業界として、サプライチェーンにおける 45章Enhance石油業界の緊急時・大規模災害対策 Resilience for Stable Oil Supply …………………… 22 感染拡大防止策を徹底し、引き続き、石油製品の安定供給に取り組んで
います。また、「石油産業の長期低炭素ビジョン」をもとに、コロナ禍で Appendix 巻末データ集 ・・・・・・3 4 ～ 4 4 あっても、安定供給体制の強化、気候変動問題への積極的な取り組み、 Profile of Petroleum Association of Japan (PAJ) …………………………… 30 そして製油所の国際競争力強化に向けた環境整備などを通じて Location of Refineries and Crude Distillation Capacity in Japan ………… 33
「サステイナブルな石油」の実現に向けて挑戦しています。 石油関連日誌 ・・・・・・4 5 ～ 4 6 本誌ではその様な動向について読みやすさを考慮し、簡潔に説明するよう
適宜改訂しています。本文中に掲載しきれなかった図表等は、巻末に
デ ータ集とし てまとめました の で あ わ せ てご 参 照ください 。
本誌が石油および石油産業に対する正しい理解の一助となれば幸いです。
2020年10月
1 2 Oil Supply and Demand, Petroleum Products 1 Sales and Distribution in Japan
❶ Oil Supply and Demand in Japan decrease of 5.4% YOY. The share in total energy supply compared to the previous year, petroleum Final energy consumption for fiscal year (FY) decreased from 39.0% to 37.6%, natural gas from 2018 in Japan was about 13,124 PJ (Peta-jour), Crude 23.4% to 22.9%, respectively, and coal 25.1%, no oil equivalent (COE): 339 million kiloliters (KL), change. On the other hand, nuclear power increased a decrease of 2.7% year-over–year (YOY). In detail, from 1.4% to 2.8%. petroleum consumption was 6,232 PJ (COE: After the Great East Japan Earthquake, thermal 161million KL), a decrease of 4.1% YOY. Power power generation such as by oil and natural gas consumption was 3,405 PJ (COE: 88million KL), a has supplemented the shutdown of nuclear power decrease of 2.0% YOY. generation. However, due to the partial restart of Furthermore, total domestic supply of primary nuclear power generation and the increase use of energy in FY2018 was about 19,728 PJ (COE: renewable energies, etc., the ratio of thermal power 509 million KL), a decrease of 1.8% YOY. Among them, has fallen below 10% again since FY2010, and has petroleum supply (including LPG, same applies been decreasing since then. below) was 7,415 PJ (COE: 191 million KL), a
Fig:1-1 ■ Final Energy Consumption Trends Unit: million kiloliters (kL) Crude oil equivalent(COE) 0 Oil 1973FY 196 41 8 38 3 287 Coal 0 1975 182 38 9 39 3 271 Natural Gas, City Gas 0 Thermal 1980 181 43 11 48 3 286 Power, 1990 194 42 15 26 71 1 Renewable, 350 Unused Energy 2000 226 38 22 32 90 1 409 2010 188 37 30 28 96 1 380 2015 170 36 29 24 88 1 349 2017 168 35 30 25 90 1 348 2018 161 35 29 25 88 1 339
0 100 200 300 400 Source: Ministry of Economy, Trade and Industry (METI)
Fig:1-2 ■ Trends of Electricity Generated Output by Source Unit: %, 100 million kWh Nuclear Power 0.2 Oils 1980FY 16.9 45.6 4.5 15.4 1 7. 4 4,850 0.2 Coal 1985 27.2 27.3 9.8 21.7 13.8 5,840 0.2 Natural Gas 1990 27.3 28.6 9.7 22.2 11. 9 7,376 Hydro Power, 0.5 Geothermal, Renewable (Solar, Wind, etc.) 1995 34.0 19.4 13.7 22.4 10.0 8,557 0.6 Others* 2000 34.3 10.7 18.4 26.4 9.6 9,396 0.9 2005 30.8 10.8 25.6 23.7 8.2 9,889 1.1 2010 28.6 7. 5 25.0 29.3 8.5 10,064 2015 1.1 9.0 31.6 44.0 9.6 4.7 8,850 2017 3.4 4.6 29.0 42.2 9.3 7. 6 3.9 8,609 2018 6.8 3.4 26.5 40.0 8.9 8.2 6.4 8,477 2030 20～22 3 26 27 22～24 10,650 (Outlook)
0 2000 4000 6000 8000 10000 12000 Annual Electricity Generated Output *： Type of power supply cannot be identified, such as part of wholesale power transactions Source: FEPC(Federation of Electric Power Companies)
3 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
Fig:1-3 ■ Primary Energy Supply Trends Unit: %, million kiloliters (kL) Crude oil equivalent(COE) 0.6 1.5 1.0 Oil,LPG 1973FY 77.4 15.5 4.1 416 Coal 1.5 0.9 Natural Gas 1975 73.4 16.4 2.5 5.3 396 Nuclear Power 1.1 Hydro Power, 1980 66.1 16.9 6.1 4.7 5.2 429 Renewable, 1990 56.9 16.7 10.2 9.3 4.1 2.9 522 Unused Energy
2000 50.8 18.1 12.9 12.1 3.2 2.9 610
2010 43.5 21.5 1 7. 2 10.6 3.1 4.2 600 0.4 2015 44.1 24.3 21.9 3.4 5.9 549 1.3 2017 42.4 23.8 22.0 3.3 7. 1 550
2018 41.3 23.7 21.4 2.6 3.3 7. 7 543
0 100 200 300 400 500 600
Source: METI
■ Unit: %, million kiloliters (kL) Crude oil equivalent(COE) Fig:1-4 Primary Domestic Energy Supply Trends 0.6 1.6 1.0 1973FY 73.8 1.7 16.9 4.4 387 Oil 1.6 1.0 LPG 1975 69.6 2.1 1 7. 4 2.7 5.6 371 1.1 Coal 1980 61.6 3.1 1 7. 6 6.4 4.9 5.4 4 11 3.0 Natural Gas 1990 52.2 3.7 16.9 10.5 9.6 4.2 507 Nuclear Power 3.0 2000 46.0 3.2 18.5 13.5 12.6 3.3 586 Hydro Power, 2010 Renewable, 37.4 2.9 22.7 18.2 11. 2 3.3 4.4 567 Unused Energy 0.4 2015 37.9 2.7 25.7 23.3 3.6 6.3 516 1.4 2017 36.3 2.7 25.1 23.4 3.6 7. 6 519 2018 34.9 2.7 25.1 22.9 2.83.5 8.2 509
2030 About 30% About 3% About 25% About 18% About 11～10% About 13～14% 489 (Outlook) 0 100 200 300 400 500 600
*Primary Domestic Energy Supply is total supply minus exports and changes in inventories Source: METI
❷ Petroleum Supply System in Japan scale tankers, to flexibly change production volume of each petroleum product in line with the domestic There are two methods for covering domestic demand structure, to adjust product qualities which petroleum product demand: One method is to import meet domestic environmental standards, to have petroleum products and the other is to import crude superiority in responding to emergencies, etc. oil and refine it to produce petroleum products Japan, therefore, imports almost all crude oil, for locally. The latter method, i.e., crude oil importation FY2019, the domestic yield of crude oil was a mere and domestic refining, so called the “Domestic 520 thousand KL, equivalent to 0.3%, or one day, Petroleum Refining system”, has been adopted in of the 173 million KL of Japan’s crude processing Japan. This method has various advantages such volume. as being able to reduce procurement costs by importing a massive amount of crude oil with large-
4 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
❸ Crude Oil Import ❹ Refining for Petroleum Products
Japan has imported crude oil of 173 million KL in Fuel oil production in FY2019 was 163 million KL, a FY2019, a decrease of 2.3% YOY. The crude import decrease of 1.5% YOY. Petroleum products have the volume by region showed that Middle Eastern oil characteristic to produce multiple products such as producing countries accounted for 89.6%. Major gasoline, kerosene, diesel oil, and heavy fuel oil are countries in terms of crude oil import volume are simultaneously produced (co-products) from crude Saudi Arabia (34.1% of total import volume), the oil at a fixed rate. United Arab Emirates (UAE, 32.7%), and Qatar (9.3%). Therefore, it is difficult to produce only a specific The top two countries accounted for more than 60% product from crude oil. On the other hand, in terms of Japan’s total crude import volume. of demand, recently the proportion of so-called “white oil” such as gasoline, kerosene, and diesel oil is increasing. Since the yield varies depending on Fig:1-5 ■ Crude oil import according to the country the type of crude oil, the optimal crude oil is selected in 2019FY or a secondary process that cracks or reforms heavy North America: 1.6% Latin America: 1.5% fuel oil etc. into lighter products “white oil” is applied Europe: 4.8% East & Central Asia:0.9% Southeast Asia: as a method to deal with this. As a result, the final Iran: 0.4% 0.9% Iraq: 1.1% Africa: 0.5% yield is about 40% for the light fractions (gasoline Bahrain: 1.4% Oceania: 0.2% and naphtha), about 50% for the intermediate four Oman: 1.7%
Saudi Arabia: Fig:1-6 ■ Annual amount of production changes Kuwait 8.9% 173 34.1% for fuel oil Unit: million kiloliters (kL)
Million kL 300 → Qatar: 9.3% 247(FY1973) 250 163(FY2019) 200 → 150 UAE: 32.7% → 100 152(FY1987) Total Fuel Oils 50 0 〈Middle East: 89.6%〉 1970 1980 1990 2000 2010 2019FY Source: METI Source: METI
Fig:1-7 ■ Trends in Fuel Oil Yield from FY1970 to 2019FY Unit: % Light Fractions Intermediates Heavy Fractions Gasoline 1970FY 11. 0 11. 7 1.4 9.1 6.5 5.3 47.0 91.9 Naphtha Jet Fuel 1973 10.7 12.1 1.5 8.9 7. 0 7. 2 44.3 91.7 Kerosene 1975 12.3 11. 4 1.4 9.2 6.9 7. 6 43.4 92.1 Diesel Fuel FOA 1980 15.1 9.2 2.0 10.4 9.4 9.1 36.0 91.2 FOB,C 1990 20.9 5.8 2.3 11. 5 16.3 12.9 21.1 90.8 2000 23.5 7. 5 4.4 11. 7 1 7. 4 11. 9 15.3 91.5
2010 28.0 9.6 6.7 9.4 20.6 7. 8 10.4 92.5
2015 29.0 10.1 8.3 8.3 22.0 6.7 9.3 93.8
2018 28.8 9.6 8.8 7. 5 23.2 6.8 9.3 93.9
2019 28.1 9.9 9.0 7. 6 23.7 6.5 9.1 93.9
0 10 20 30 40 50 60 70 80 90 100
Source: METI
5 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
products (kerosene, jet fuel, diesel oil, and heavy Import and Export of the Petroleum Products fuel oil A (FOA), and about 10% for the heavy fuel ❻ oil B (FOB) and heavy fuel oil C (FOC). In addition to For Japan, which adopts the “Domestic Petroleum using secondary processes (i.e., FCC, Reformer, etc.) Refining System”, petroleum product import plays to refine products, there are other methods such as a supplemental role. Regarding naphtha, however, importing and exporting petroleum products and about 60% of its domestic demand is served by inventory adjustments to meet the product demand. imported products, because petrochemical companies in Japan independently import naphtha as a ❺ Demand for Petroleum Products petrochemical feedstock. As for the export quantity by fuel product in FY2019, The total petroleum products demand for fuel oil Jet fuel, diesel oil, and FOC were ranked in descending in FY2019 was 162million KL, a decrease of 3.6% YOY. order. Jet fuel exports about twice as much as the Although jet fuel were up 3.5% from the previous domestic demand. This is because the volume of jet year, gasoline decreased by 3.0%, naphtha decreased fuel that is supplied domestically to international by 3.1%, kerosene decreased by 6.3%, diesel oil aircraft is considered as export. Similarly, when FOC decreased by 0.4%, and FOA decreased by 8.2% YOY produced in Japan is supplied to an ocean-going respectively. Especially, FOB and FOC decreased vessel, its volume is considered as an export, and sharply, down 16.3% from the previous year. these exports account for about a half of the FOC exports. In addition, diesel oil produced in Japan has
Fig:1-8 ■ Petroleum Product(Fuel) Domestic Demand Trends in Japan Unit: 1,000kL Jet Fuel:1,673 Gasoline Naphtha Kerosene Diesel Oil FOA FOB,C Total Fuel Oil 1973FY 27,223 36,240 21,930 16,759 19,306 111,007 234,138 2,059 1975 28,995 32,031 21,663 15,997 18,992 92,903 212,639 2,967 1980 34,543 26,297 23,566 21,564 21,083 79,199 209,219 3,056 1985 36,698 24,613 25,307 25,808 20,315 45,133 180,931 3,739 1990 44,783 31,423 26,701 37,680 27,066 46,623 218,012 4,849 1995 51,628 43,988 30,017 45,452 28,796 40,675 245,405 4,639 1999 57,251 48,004 29,949 43,468 29,151 33,505 245,966 *1 4,611 2000 58,372 47,686 29,924 41,745 29,516 31,364 243,218 4,906 2004 61,476 *2 49,026 27,977 38,203 29,100 26,556 237,245 5,129 2005 61,421 49,388 28,265 37,116 27,780 27,009 236,109 5,153 2010 58,159 46,699 20,349 32,891 15,425 17,343 196,019 5,464 2015 53,127 46,234 15,946 33,594 11,871 14,241 180,476 4,972 2018 50,625 43,910 14,534 33,803 11,067 8,836 167,746 5,146 2019 49,107 42,550 13,621 33,657 10,156 7,394 161,631
0 50,000 100,000 150,000 200,000 250,000
*１:maximum “Total Fuel Oil” value in the past 46 years @245,966 thousand KL *２:maximum “Gasoline” value in the past 46 years @61,476 thousand KL Source: METI
Fig:1-9 ■ Ratio of product exports to domestic production Fig:1-10 ■ Ratio of product imports to domestic demand FY Gasoline Jet Fuel Diesel Oil FOC FY Naphtha FOC 2000 0.6% 58.7% 4.9% 15.5% 2000 63.2% 2.8% 2005 0.9% 58.9% 10.1% 27.9% 2005 56.6% 15.3% 2010 3.8% 63.7% 25.7% 30.3% 2010 58.3% 17.4% 2015 7.2% 67.8% 22.6% 35.8% 2015 62.1% 24.4% 2018 6.5% 68.8% 20.6% 47.0% 2018 62.1% 21.5% 2019 6.4% 67.9% 22.0% 50.2% 2019 62.1% 6.2% Source: METI Source: METI
6 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
a sulfur content of 10 ppm or less, and its exports to consumers. It is excellent in large-volume and long- Australia, where a strict sulfur content regulation is distance transportation. The amount of transportation taken, has increased to about 50% of Japan's total is about 1,000 to 7,000 KL per tanker. diesel oil exports in 2019. While domestic demand has Railway transportation is used to transship oil been declining, gasoline and other fuels have also from sea-side refineries to oil depots in inland areas being exported, depending on the trends in overseas by trains made up of special freight wagons called markets. railroad tankers. The amount of transportation is about 60 KL per railroad tanker and about 1,200 KL ❼ Petroleum Logistics in Japan per train. A tank truck is used to deliver oil from refineries Petroleum products are delivered to consumers and oil depots to SS and consumers. The amount from refinery via oil terminals and service stations of transportation per vehicle is about 20 KL, which (SS). Depending on the location of the delivery is smaller than coastal tankers and railroad tankers, destination, the handling volume, such methods as but the tank truck transportation has excellent the transportation distance, etc., coastal tankers, tank characteristics in terms of mobility and flexibility. trucks, and railroad tankers are used in Japan. As another means of transportation, a pipeline of A coastal tanker is used for marine transportation approximately 47 km has been installed between between sea-side districts and also for transshipping Chiba Port in Tokyo Bay and Narita Airport to supply oil from a refinery to an oil terminal or delivering oil aviation fuels for aircrafts at the airport. directly from a refinery or an oil terminal to heavy Though the various means of transportation are
■ Fig:1-11 Oil Supply Chain ● Crude Oil Tanker (Distribution and Logistics channels) Import 585 Vessels in operation (estimated in FY2019) Crude oil storage and stockpiling
● Crude Oil Tank Capacity :36.987million ｋL ● Facilities for the petroleum (end of FY2017) Refining products Refinery :22 Site Capacity :3.52 million B/D (end of FY2019) Products storage and stockpiling ● Tanks and distribution facility Oil Terminals:Capacity; 13.365million ｋL ● Tanks for petroleum products Number of Tanks: 3,182 (including semi-finished) (end of FY2017) Capacity :31.958 million ｋL Coastal Tanker :529 Vessels (end of FY2019) (end of FY2017) Railroad Tanker :1,351 (end of FY2019) Distribution and Tank Truck:6,515 (end of FY2017) Logistics
Sales and ● SS(Service Station) Marketing 29,637 Sites (end of FY2019)
7 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
used to deliver oil to consumers, due to the nature from April 2020 to conduct outdoor sales of goods at of the transportation of hazardous materials, there SS and refueling permits at self-SS by using tablet is a serious shortage of crews of coastal tankers and devices. tank trucks. Securing the necessary manpower in the future is becoming an issue. ■ Responses to Safety and Environmental Issues at SS In accordance with the increase of self-SS, incidents, such as gasoline spills and refueling with Business Climate Changes Surrounding ❽ Service Stations (SS) the wrong fuel, are occurring. Petroleum Association of Japan (PAJ), therefore, has been disseminating ■ Change in Needs and Increase in Number of Self- information on how to fill gasoline properly at self- service SS service SS through posters and the PAJ website. Domestic gasoline sales volume shows a downward Furthermore, as a tool for safety management of trend due to structural factors such as population SS facilities, PAJ, with the cooperation of related decline and vehicles’ fuel efficiency improvement. organizations, publishes the “ SS Facility Safety Besides, an increase in New Generation Vehicles such Inspections Record Book” for SS which should as Electric Vehicles (EV), Plug-in Hybrid Vehicles (PHV) be conducted various inspections and accurate and Fuel Cell Vehicles (FCV) is expected in the future. measurement of underground tank inventories. In April 1998, a manned self-service SS, where As refueling is done by drivers at self-service a qualified SS attendant could watch car drivers’ SS, each oil company is actively taking safety refueling operations, was introduced. Since then, countermeasures such as strengthening monitoring the number of self-service SS increased to 10,320 of refueling, ensuring good conductivity of refueling at the end of March 2019, because it makes it nozzles to prevent static electricity spark-induced fires possible to operate more efficiently than full-service and installing splash guard units to prevent spills in SS. This accounted for about 35% of the total SS. order to improve safety at self-service SS. Recently, while the petroleum companies, i.e., Considering the importance of the soil and primary oil distributers (Motouri), distributors and groundwater pollution issue at SS, PAJ has created sales dealers have been working independently and the “SS Soil Environment Safety Book” for early enthusiastically to construct self-service SS, some identification and prevention of soil pollution by oil of them have been closed due to their sales volume spills at SS. decline. In addition, to promote the dissemination of using To cope with such changes, it has become an urgent synthetic plumbing in view of its low risk of corrosion issue for oil refiners, Motouri and retail dealers (SS) in underground pipes in contact with soil, PAJ, in to make joint efforts to strengthen value-added sales services at SS and improving operational efficiency. Fig:1-12 ■ Changes in SS and self-SS by year As measures to create new additional services at 60,421 SS, setting up stores in other industries such as 60,000 59,615 sites 56,444 convenience stores at SS sites and handling car 53,704 51,294 leases are promoted. 50,000 48,672 45,792 In July 2019, an explosion and fire broke out at the 42,090 38,777 40,000 studio of Kyoto Animation, an animation production 36,349 33,510 31,467 company, with gasoline purchased in portable 30,070 30,000 cans. In response to this incident, which claimed The number of SS 29,637 many lives, the Fire Defense Law was amended and 20,000 enacted in February 2020 to require SS to confirm the 10,320 8,862 9,856 purchaser's identification and the purpose of use as 10,000 7,774 6,162 10,100 4,104 8,449 9,530 well as to keep its sales record when selling gasoline 2,523 85 422 Self-SS 0 in a portable can. 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2019 End of each In addition, for efficiency improvement and FY diversified operations at SS, it becomes possible Source: METI, Oil Information Center.
8 1. Oil Supply and Demand, Petroleum Products Sales and Distribution in Japan
cooperation with the Fire and Disaster Management operation during an emergency. Agency and other related organizations, has For this reason, PAJ and petroleum companies developed a standard specification for the installation established the “SS Depopulated Area method of a fire-resistant connection boxes to be Countermeasures Council” together with the used underground. government and related organizations in March 2015. The council not only provide SS operators ■ Issue of SS in Depopulated Areas with identification of issues on SS operations With fierce market competition due to declining and equipment, and examined tactics for such petroleum fuel demand and heavy burden of solutions, but also disseminate information to local measures against accidental oil spills from governments that are striving to relieve concerns underground tanks (UGT). the number of SS has about supply instability, deliberate deregulation, peaked at 60,421 at the end of FY1994, and has establish a consultation desk and coordinate for continued to decline to 29,637 at the end of FY2019. the implementation of measures. After accurately Consequently, “the diminishing number of SS in grasping the needs of local residents, the petroleum the depopulated areas” has become an issue of industry is working on this issue under the leadership concern. Due to closures of SS, the living areas of the local governments and municipalities. which face difficulty in obtaining supplies of fuels such as kerosene, an essential commodity in cold Fig:1-13■ Trends in number of SS depopulated regions, and vehicle fuels for agricultural and forestry municipalities vehicles and machinery have been increasing. This Total End of FY 0 SS 1 SS 2 SS 3 SS has become a social problem, taken up by the media, municipality in such regions. At the end of FY2019, the number of 2012 7 60 81 109 257 “SS depopulated areas” with three or less SSs in the 2013 8 63 81 113 265 municipalities was 332, an increase of 7 municipalities 2014 10 66 96 111 283 from the end of the previous fiscal year. 2015 11 71 100 106 288 This situation would bring serious consequences by 2016 12 75 101 114 302 not only inconveniencing consumers during ordinary 2017 10 79 103 120 312 times, but also by seriously destabilizing fuel supply 2018 9 83 104 129 325 to local residents if an SS were forced to suspend its 2019 10 82 107 133 332 Source: METI
Fig:1-14 ■ Crude Oil CIF and Gasoline Retail Price(Tax excluded) Trends in Japan Unit: ¥/L
140
←Repeal of Fuel ←Repeal of Petroleum 120 Import Restriction Industry Law Law (Dec. 2001) (Import liberalization of fuel products) 100 (Mar. 1996) Gasoline Retail Price 80 (Tax excluded) (National Average)
60
40
Crude Oil CIF 20
0 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’0年 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’ 11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Source: MOF, Oil Information Center
9 Energy Policy especially in Japanese Petroleum 2 Sector
❶ Transition of Petroleum-related Regulations Fig:2-1 ■ Petroleum Industry Regulatory Reform History in Japan Jul ’62 Enactment of Petroleum Industry Law
Regulations of the petroleum industry had been Dec ’73 Enforcement of two laws for emergency responses enforced by giving the highest priority to the concept Apr ’76 Enactment of Petroleum Reserve Law of securing a stable supply under the Petroleum May ’77 Enactment of Gasoline Retail Business Law Industry Law, which was enacted in October 1962 as Enactment of Provisional Measures Law on Importation of a fundamental law. The Petroleum Reserve Law, the Jan ’86 Specific Refined Petroleum Products Gasoline Retail Business Law, and the Provisional (Fuel Import Restriction Law) Automatic Approval for Installation of Product Upgrading Measures Law on the Importation on Specific Refined Jul ’87 Facilities Petroleum Products (Fuel Import Restriction Law) Mar ’89 Abolition of Guidance on Gasoline Production Quota were enacted since then. Consequently, a broad Abolition of Guidance on Kerosene Inventory Build-up for Oct ’89 range of regulations on petroleum imports, refining, Winter manufacturing, and marketing were in effect. Abolition of Guidance on SS Construction (Scrap-and-Build However, in line with advances in globalization of Mar ’90 Rule) and on Transfer of SS Brand between Primary Distributors the Japanese economic society, regulatory reforms Flexible Approval for Installations of Crude Processing Sep ’91 in oil have been taken in stages. With the abolition of 1st Phase Deregulation Facilities the Fuel Import Restriction Law, which liberalizes oil Mar ’92 Abolition of Guidance on Crude Processing (Throughput) product import, in March 1996 and the abolition of the Mar ’93 Abolition of Tariff-quota System (TQ) for Heavy Fuels Petroleum Industry Law, which abolishes oil supply Repeal of Fuel Import Restriction Law (Import liberalization Mar ’96 and demand adjustment regulations, at the end of of fuel products) December 2001, the petroleum industry reached Enactment of Act on Quality Control of Gasoline and Other Apr ’96 complete liberalization, except for regulations on oil Fuels by revising Gasoline Retail Business Law stockpiling and fuel qualities. Apr ’96 Amendment of Petroleum Reserve Law
Automatic Approval of Petroleum Product Exports Jul ’97 (Export Liberalization of Fuel Products) ❷ The Strategic Energy Plan (SEP) Dec ’97 Abolition of SS Certificate System for Fuel Supply-source by its Branded Primary Distributor 2nd Phase Deregulation
The Basic Act on Energy Policy, enacted in June Apr ’98 Lifting of the Ban on Manned Self-service SS
2002, illustrates the following three basic principles Dec ’01 Repeal of Petroleum Industry Law of energy policy (the “3E”): “Energy security through Jan ’02 Enactment of New Oil Stockpiling Act stable energy supply”, “Environmental consideration”, Partial Revision of Act on Quality Control of Gasoline and and “Efficient supply using market mechanisms.” The Feb ’09 Other Fuels (Registration and Quality Assurance Obligation of Processors) law also stipulates to formulate the “Strategic Energy Enforcement of Law Concerning Sophisticated Methods Aug ’09 Plan” (SEP), to map out the basic direction of the of Energy Supply Structures nation’s energy policy and to review it at least every Enforcement of measures for prevention of leakage from Jun ’10 three years. SS underground tanks
The 5th SEP, approved by the Cabinet in July Notification of Criteria for Judgment Concerning Promotion Jul ’10 of Effective Use of Fossil Energies (Raise Installation Ratio 2018, maintains the framework of the 4th SEP that of Heavy Oils Cracking Units to about 13% by Mar. 2014) was developed in 2014 after the Great East Japan Notification of Criteria for Judgment for Using Nonfossil Earthquake was formulated based on the discussion Nov ’10 Energies (Set Target Volumes for Using Bio-ethanol for Mixing with Gasoline by Mar.2018) toward 2050 at the study group “Energy Situation Nov ’12 Amendment of Oil Stockpiling Act Round-table Meeting”, established in METI in August Notification of Criteria for Judgment Concerning Efficient 2 0 1 7. Jul ’14 Use of Crude Oils, etc. at oil refiners (Raise Installation For this reason, the new SEP consists of (1) Ratio of Residual Oil Processing Units to 50% by Mar. 2017) Further strengthening efforts to ensure realization Notification of Criteria for Judgement Concerning Efficient Oct ’17 Use of Crude Oils, etc. at refiners (Raise Processing Ratio of the energy mix for 2030 in the long-term energy of Vacuum Distillation Units to about 7.5% by Mar. 2022) supply and demand outlook (July 2015), compiled Notification of Criteria for Judgement for Using Non fossil Apr ’18 Energies (Set Target Volumes for Using Bio-ethanol for in accordance with the 4th SEP and (2) Designing Mixing with Gasoline by Mar. 2023) a double-track scenario with ambitious targets for
10 2. Energy Policy especially in Japanese Petroleum Sector
energy conversion and decarbonization in 2050. b)During the transitional period until energy (1) Specific measures toward 2030 are: conversion and decarbonization, fossil energy a)Under the 3E+S (safety) principles the direction sources are still the main source of primary of each energy source within the primary energy both inside and outside Japan. energy structure is to make a strategic move to lay foundation to use renewable energies as Toward the Advancement of Energy Supply ❸ Structure a major power source, lower dependency on nuclear power generation as much as possible The concept of “oil substitution” in the policy and higher efficiency improvement in thermal measures of the Alternative Energy Law, which aims power generation. only at reducing reliance on oil, was reexamined, b)Since oil continues to be used as an important and a new law, the Law Concerning Sophisticated energy source, and is positioned as “the Methods of Energy Supply Structures, which is last resort” of energy supply in the event of intended to urge energy suppliers (electric power, city a disaster, it is necessary to strengthen the gas and oil) to expand the use of non-fossil energy business foundation of the petroleum industry resources as well as to promote effective use of fossil in order to maintain the oil supply networks. energy resources, was enacted in July 2009. c)For business restructuring of the petroleum Specifically, “the notification of the criteria for industry, it is important to enhance productivity judgment concerning the promotion of the effective through expand business into other fields such utilization of crude oil for Petroleum Refiner” was as the collaboration with industrial complexes given in July 2010 (First Ministerial Notice,1st MN), and the introduction of digital technologies. aiming to raise the facilities installation ratio of (2) Specific measures toward 2050 are: Japan’s heavy oils cracking units (about 10% in 2010) a)With "more sophisticated 3E+S" as the to about 13% by FY2013. Each Petroleum Refiner evaluation axis, aiming for energy conversion made effort to raise the installation ratio of heavy oils using a scientific review mechanism in order to cracking units by (1) the reduction of crude distillation flexibly modify and decide the priority of each units and (2) new or additional installation of heavy option based on the latest technological trends oils cracking units. Consequently, the average and circumstances. facilities installation ratio of Japan’s heavy oils
Fig:2-2 Law Concerning Promotion of Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Raw Materials by Energy Suppliers (Law Concerning Sophisticated Methods of Energy Supply Structures)
Basic Policy (Formulated by METI Minister)
Criteria for Judgment (Formulated by METI Minister) Oblige specific energy suppliers to comply with ① Utilization of Non fossil Energies，and ② Effective Utilization of Fossil Energy Sources Utilization of Non fossil Energies Effective Utilization of Fossil Energy Sources Electric Companies, City Gas City Gas Companies and Oil Companies Companies and Oil Companies
Plan Creation/Submission based on Criteria for Judgment
Status of efforts is quite insufficient in light of the Criteria for Judgment, METI Minister may take measures to advice or order the relevant energy supplier, and the supplier will be subject to penalties (a fine of up to one million yen) if it violates the order.
11 2. Energy Policy especially in Japanese Petroleum Sector
cracking units improved to around 13% as of the end oil refiners and primary oil distributors (Motouri) of FY2013. became active. In the wake of the merger of Nippon The new criteria for judgment (2nd MN) were Oil and Mitsubishi Oil in April 1999, unprecedentedly notified to oil refiners in July 2014. With the new large-scale and rapid market reorganization has notification, the definition on the conventional occurred since then. facilities installation ratio was revised to include In June 2002 Esso Sekiyu, Mobil Sekiyu and other that of residual oil processing units, which adds affiliated companies were integrated into newly heavy oils direct desulfurization units, fluid catalytic established ExxonMobil Yugen Kaisha. In 2008, to cracking units and solvent de-asphalting units to the cope with recent high crude oil prices and fierce conventional heavy oils cracking units. The target competition in the overall energy market, Nippon percentage of the new facilities installation ratio Oil merged with Kyushu Oil in October 2008. raised to 50% (about 45% at the time of FY2014) by Furthermore, in July 2010 JX Nippon Oil & Energy the end of March 2017. Each oil refiner was obliged to was established as a result of the management attain the target ratio for its facility improvement. In integration between Nippon Oil and Japan Energy, the new criteria for judgment, the accommodation of which had concluded a wide-ranging business tie- installation capacities through collaboration between up agreement from upstream operations to refining refineries and business restructuring was permitted and distribution operations, fuel cell business, and to attain the target ratio. Besides, each oil refiner was technology development. The industry’s management requested to make a periodic report to METI on the efforts toward further rationalization and efficiency progress status of its concrete program to achieve improvement were conducted. Then in June 2012, this goal, together with its business restructuring plan ExxonMobil Japan Group changed its domestic capital as a base for the facility optimization. Consequently ties in Japan to transform itself into the TonenGeneral the average facilities installation ratio of residual oil Group, headed by Tonen General Sekiyu. processing units was 50.5%. as of the end of FY2016. After that, business alliances and business In May 2017, the Natural Resources and Fuel integrations have progressed with the aim of further Subcommittee under the Petroleum Council’s strengthening competitiveness by streamlining Advisory Committee for Natural Resources and product supply and logistics. In February 2017, Cosmo Energy, showed a basic direction to promote further Oil and Kygnus Sekiyu entered into a capital and utilization of the residual oil processing units, through business alliance, and in April of the same year, JX improvement of capacity utilization ratio, cooperation Nippon Oil & Energy*1 and TonenGeneral Sekiyu have between refineries and capacity expansion. Then, the merged to form ENEOS*2, which accounts for 55% third criteria for judgement (3rd MN) was notified in of the domestic refining capacity. Furthermore, the October 2017. In this new notification, the vacuum- management integration between Idemitsu Kosan residue oil (VR) cracking rate, which is the amount and Showa Shell Sekiyu in April 2019 resulted in the of VR flowed into the specific cracking unit like Fluid consolidation of Japan’s Motouri into five companies. Catalytic Cracking (FCC) was aimed to increase to *1 In January 2016, JX Nippon Oil & Energy changed its name to about 7.5% in FY2021 as the target index. Each oil JX Energy. *2 In June 2020, JXTG Energy changed its name to ENEOS. refiner is obliged to achieve the target in accordance with the actual performance of VR cracking rate. Cooperation between refineries is also permitted as a Energy Policy for Other Energies-- Power ❺ and Gas means of achieving the target. In the electricity and gas businesses as well, supply efficiency has been improved by introducing market Movements toward the Petroleum ❹ Industry Reorganization mechanisms through step-by-step deregulation. Especially in recent years, major progress has been In view of the global realignment of oil majors made toward the opening of the electricity and gas and fierce competition in the domestic oil market markets through the "Integrated Reform of Energy after the abolition of the Fuel Import Restriction Law, Systems" which aimed at creating a comprehensive the movement toward reorganization of domestic energy market.
12 2. Energy Policy especially in Japanese Petroleum Sector
Fig:2-3 ■ Reorganization of Oil Companies in Japan (as of Jul 2020)
Idemitsu Kosan Idemitsu Kosan
Merger in Apr 2019 Idemitsu Kosan Showa Oil Merger in Jan 1985 Showa Shell Sekiyu Showa Shell Sekiyu Shell Sekiyu
Merger in Apr 1999 Nippon Oil Nippon Mitsubishi Nippon Oil Oil Mitsubishi Oil
Merger JX Nippon Oil Kyushu Oil Merger in Oct 2008 in Apr 2010 & Energy
Nippon Mining Merger in Dec 1992 Japan Energy Kyodo Oil Merger in Apr 2017 ENEOS Tonen Merger in Jul 2000 TonenGeneral Sekiyu General Sekiyu ExxonMobil TonenGeneral Group Group Esso Sekiyu Merger in Jun 2002 ExxonMobil Mobil Sekiyu
Capital transfer Mitsui Oil in Feb 2014
Daikyo Oil Merger in Apr 1986 Cosmo Oil Cosmo Oil Maruzen Oil Alliance in May 2017 Kygnus Sekiyu Kygnus Sekiyu
Taiyo Oil Taiyo Oil
Regarding the electric power business, in the wake retail market by taking advantage of their own of the accident at the nuclear power plant caused by strengths and offered various price menus and the Great East Japan Earthquake and the tight supply- services. demand balance of electric power, deliberations for Regarding the gas business, in response to the electric power system reform began, and in April deliberation of power system reform, the need for 2013, the Cabinet decided on the "Electric Power enhancing comprehensive reform of the gas market System Reform Policy". has increased and concrete studies have begun at After that, the Electricity Business Act was gradually the "Gas System Reform Subcommittee" established revised in line with the reform policy, and the in November 2013. The subcommittee report was "Organization for Cross-regional Coordination of compiled in January 2015. Transmission Operation (OCCTO)" was established In June 2015, a bill to amend the Gas Business in April 2015, full liberalization of the electricity retail Act, in which the based on the report contents were market was realized in April 2016, and the power reflected, was enacted. Full liberalization of gas transmission section and the distribution sector were retail market was realized on April 1, 2017, and legal legally separated in April 2020. Since the complete separation of the gas supply pipeline sector of the liberalization in the retail market, many companies, three major city gas companies is scheduled on April including oil companies, have entered the electricity 1, 2022.
13 2. Energy Policy especially in Japanese Petroleum Sector
❻ Various Petroleum-related Taxes portion) in addition to the product material price. Consequently, 52% of the gasoline retail price is Various taxes are levied on oil in multiple stages. calculated as tax. Currently, customs duty is imposed on imported petroleum products, and petroleum and coal tax Fig:2-5 I Petroleum-related Taxes (national) is levied on imported crude oil and per Liter of Gasoline (as of Jul 2020) petroleum products at the import stage. When refined products are delivered to consumers, individual indirect taxes such as gasoline tax, diesel (Example: Gasoline Retail Price at 132.3 yen/R) fuel transaction tax, aviation fuel tax, and oil and petroleum gas tax (taxed only for automobiles) are 132.3 yen/R Tax on Tax 5.7 yen levied on the respective products. (Consumption Tax 12.0 yen) 120.3 yen/ Consumption Tax on These petroleum-related taxes amounts to about R Net Gasoline Price 6.3 yen 4,140 billion yen, which accounts for approximately 4.0% of tax revenue, which is the sum of national Gasoline Tax 53.8 yen and local taxes. If the consumption tax of about 1,640 billion yen (for the sales of petroleum products including oil taxes) is added to these petroleum- Petroleum and Coal Tax 2.8 yen related taxes, the total tax on oil amounts to about 5,780 billion yen. Net Gasoline Price 63.7 yen For example, the retail price of 132 yen per liter of gasoline (as of July 27, 2020) includes petroleum- related taxes (petroleum and coal tax plus gasoline Source: Oil Information Center tax) and consumption tax (including the tax-on-tax
Fig:2-4 ■ Multiple & Multi-stage Imposition of Petroleum-related Taxes (FY2020 Budget)
LP Gas Petroleum Gas Tax 12 billion yen Tax rate Tax revenue 9,800yen/kl Gasoline Tax Gasoline 53,800yen/kl 2,440 billion yen
Diesel Fuel Transaction Tax Diesel Oil 32,100yen/kl 964 billion yen Petroleum and Coal Tax Imported Crude Oil Aviation Fuel Tax 2,800yen/kl Jet Fuel 18,000yen/kl 69 billion yen
Customs Duty Naphtha 655 billion yen Consumers 2.8 billion yen
Products Kerosene Consumption Tax 10% Imported Oil
Heavy Fuel Oil
Others
Import Stage Product Stage Consumption Stage
Consumption Tax Total Petroleum-related Tax: Approx. 4.14 trillion yen 1,640 billion yen
Total: Approx. 5.78 trillion yen Includes 310 of Tax on Tax
Source: MOF
14 Safety and Environmental Measures of the 3 Petroleum Industry
countermeasures as required on both the software ❶ Safety Measures in Refineries and hardware sides.
All possible safety measures are taken into Promotion of Voluntary Action Plan on consideration in refinery facility construction, from ❷ Industrial Security a safety review on construction materials in the design stage to the management of construction Petroleum Association of Japan (PAJ) formulated work. Facility layouts are planned so that safe “Voluntary Action Plan on Industrial Security” in distances required by act are kept not only between August 2013. The plan is reviewed annually and may the petroleum processing and storage sites and necessary revision is made accordingly. The basic the nearby residential areas, but also between the idea behind this plan is to set the industry’s specific facilities. Each plant facility and storage tank is goal as “Zero Serious Accidents” and implement also designed to comply with the seismic design measures based on a risk-based approach which standards. invests finite resources in effective safety measures The facility maintenance of plans and tanks according to the magnitude of the risk. includes periodic shutdown, on-stream, daily and Specific initiatives by PAJ include activities for (1) special inspections to detect the hazard early and Horizontal spread of accident cases and (2) Sharing of take safety measures for facility. Also, in order to best practices on the member companies’ industrial minimize damage by detecting abnormal phenomena safety activities as follows: and extinguishing any fire at an early stage, an (1)Activities for horizontal spread of accident emergency shutdown system is in place and oil and cases include (i) sharing the causes and lessons gas leak detectors have been installed. learned from accidents that have occurred In addition, “In-company Disaster-prevention at each company, (ii) holding an information Organizations” and “Joint Disaster-prevention briefing session to explain in detail the case that Organizations”, consisting of regularly trained disaster is deemed particularly important among the prevention personnel, are formed to ensure that the reported accidents, and (iii) following up on the company can respond appropriately and quickly in status of accident information utilization. These the event of an accident such as a fire or oil spill. In activities are designed to prevent the recurrence such organizations, chemical fire engines, elevated of similar accidents. water spraying vehicles, foam liquid carriers, oil (2)For sharing best practices to improve the boom, oil recovery vessels, and fire-floats are in place industrial safety activities of each company, a and ready to operate. Furthermore, a large-capacity liaison meeting is held regularly to exchange extinguishing foam cannon system have been information on risk assessment efforts and safety installed at the wide-area joint disaster prevention culture development activities conducted by each organizations in 12 districts across the country to company or other industries. cope with a full-scale fire involving a large storage As specific measures, each company must first set tank. targets and policies regarding industrial security with In terms of safety measures for plant workers the management’s commitment. Specific measures at work, each refinery conducts hazard prediction to be taken include (i) facility management such activities to prevent human error. Experiences of as corrosion countermeasures, (ii) human error past incidents at refineries are studied collectively prevention activities, (iii) risk assessment, (iv) review to develop incident prevention measures, which are and update of procedures and manuals, (v) employee incorporated in the safety training programs. education and training with simulators and other To prepare for the Tokyo inland earthquake and the tools, and (vi) risk management activities through Nankai Trough giant earthquake that are anticipated exchange of opinions with local residents and joint to occur in the future, petroleum companies are disaster drills with them. These specific activities are evaluating the earthquake resistance of the main periodically evaluated to measure the achievement of facilities at their production and shipping points of goals and implementation status of measures. petroleum products, and also enhancing earthquake At the annual follow-up to the Voluntary Action
15 3. Safety and Environmental Measures of the Petroleum Industry
Plan, PAJ reports the occurrence of accidents and the type floating or inner-floating roof to contain VOC activities undertaken of each item of the plan, which emissions. In addition, hydrocarbon vapor recovery contribute to the reliable implementation of industrial units are installed at fuel loading facilities for railroad safety activities. tankers and tank trucks. PAJ has been making efforts to control VOC Environmental Measures in the Oil Refining emissions under its Voluntary Action Plan, which set ❸ Sector a target of a 30% reduction in fiscal year (FY) 2010 versus the base year of FY2000, and is confirming The Japanese petroleum industry is striving for the results periodically. The reduction target was cleanliness in refineries with special attention to achieved in FY2010 with a 31% reduction. The follow- air and water quality, noise levels, the volume of up effort was continued and the FY2018 result was a industrial waste and areas of greenery. One major 46% reduction. example of such efforts is the acquisition of the ISO Environmental Management System “ISO14001”, enacted in September 1996 and established as the ❹ Efforts toward Fuel Quality Improvements Japanese Industrial Standard in October 1996, or its equivalent certification to enhance the environmental ■ Improvement in Gasoline and Diesel Oil Quality management system at refineries and oil terminals. The Japanese petroleum industry has also promoted measures to address air pollution problems ■ Volatile Organic Compounds (VOC) Reduction from the fuel quality side. To cope with this national Measures concern, the program was initiated for the first time VOC are known to change into suspended in the world to eliminate the toxic additive, tetra- particulate matter (SPM) or photochemical oxidants alkyl-lead, for blending with gasoline used as a high when released into the atmosphere. Fuel storage octane base material. The phased lead elimination tanks and their loading facilities are the main sources program was completed in February 1975 for regular of VOC emissions from refineries. grade and in December 1986 for premium grade. In For this reason, crude oil and gasoline at refineries the 1990s and after, the petroleum industry focused and oil terminals are stored in tanks with a sealed- on sulfur reduction programs for both gasoline and diesel oil in line with the development of more sophisticated exhaust gas aftertreatment systems. Fig:3-1 ■ Annual trend of VOC emissions The petroleum industry, in advance of regulations, Unit: 10,000 t/year 7 launched sulfur-free (10ppm or less) gasoline and diesel oil from January 2005 on a voluntary basis 6.14 prior to legislation. 6 Target: 30% reduction(vs FY2000) 5.49 Actual: 31% reduction(accomplished) In addition, the content of benzene in gasoline has been reduced to 1% or less since January 2000, in 5 an effort to further reduce the amount of hazardous 4.26 3.92 chemicals. 4 3.73 3.69 3.52 To reduce hydrocarbon emissions from 3.33 gasoline in the atmosphere, which are the cause 3 of photochemical smog, the petroleum industry voluntarily lowered the maximum vapor pressure 2 standard for summer season gasoline from 2001, and has reduced it to 65 kPa or less after 2005. 1 ■ Low Sulfur Kerosene (Fuel Quality Control Act,
0 Japan Industrial Standard) 00 05 10 12 14 16 17 2018 FY Kerosene for heating use in Japan has the world’s Source: VOC emission control voluntary action plan(PAJ) highest standard for reduced sulfur content, a
16 3. Safety and Environmental Measures of the Petroleum Industry
maximum of 0.008%(80 ppm), to assure cleaner and blended fuel as a general gasoline vehicles’ use was safer indoor combustion. banned effective August 2003 and amended the Fuel Quality Control Act to include the upper limit ■ Fuel Quality Control Act of alcohol-to-gasoline blending as a maximum of The import of petroleum products was liberalized 3% of volume for ethanol and 1.3 % in weight for with the abolition of the Provisional Measures Law oxygenate. Furthermore, as a part of furnishing on the Importation on Specific Refined Petroleum the usage environment of bio-diesel fuels, that are Products (Fuel Import Restriction Law) at the end recently used for a global warming countermeasure, of March 1996. The Act on the Quality Control of effective March 2007, mandatory standards for Gasoline and Other Fuels (Fuel Quality Control Act) FAME (Fatty Acid Methyl Ester), Tri-glyceride and was enacted, replacing the Gasoline Retail Business four other materials were added to diesel oil quality Law, to maintain the world’s highest level of gasoline, requirements in order to allow blending of bio-diesel kerosene and diesel oil quality. The new law specified components in diesel oil. The additional requirements the existing quality standards as compulsory ones include an upper limit for blending in diesel oil. from both environmental and safety viewpoints, and In February 2009, a registration system and quality obliged the oil refiners, distributers and retailers to assurance system was established for new entrants maintain such quality standards. in the business for blending ethanol and ETBE The act also introduced the display of a Standard (Ethyl-Tertiary-Butyl-Ether) with gasoline. Quality (SQ) certificate at service stations for fuels satisfying the standard quality requirements. ■ Low Sulfur in Marine Fuels At first, the compulsory standards were specified Emission of air pollutants from ships (Sulphur on 8 items for gasoline quality, and on 3 items Oxides: SOx, Particulate Matter: PM, etc.) are for both diesel oil and kerosene quality. The Fuel regulated by the International Convention for the Quality Control Act has been amended since then, Prevention of Pollution from Ships (MARPOL), which as various new importers entered the market, new is deliberated and adopted by the International regulatory items were added as a result of problems Maritime Organization (IMO). Under the 2008 treaty that were not initially envisioned and also the amendments, the sulfur content of marine fuels used emergence of new eco-friendly fuels. As an example, outside the Emission Control Areas (ECA) has been several fires involving vehicles using the imported restricted to 3.5% m/m (mass by mass) or less from high concentration of alcohol-blended fuel (more January 2012 and to 0.5% m/m or less from January than 50% of content is alcohol) were reported. To 2020. ensure consumers’ safety, the sale of such alcohol-
Fig:3-2 ■ The Fuel Quality Control Act-Compulsory Standard(as of Apr. 2020) Gasoline Diesel Oil Kerosene Heavy Fuel Oil
Items Specification Items Specification Items Specification Items Specification
Lead Non-detectable Cetane index 45 min. Sulfur content 0.008 mass% max. Sulfur content*3 0.5 mass% max.
Sulfur content 0.001mass% max. Sulfur content 0.001 mass% max. Flash point 40℃ min. Inorganic acid Non-detectable MTBE 7 vol% max. Distillation,T90% 360℃ max Color,Saybolt +25 min. Benzene 1 vol% max. Kerosene 4 vol% max. Triglyceride 0.01 mass% max.
Methanol Non-detectable FAME*2 0.1 mass% max. Washed gum 5 mg/100ml max.
Color Orange
Oxgen content*1 1.3 mass% max.
Ethanol*1 3,0 vol% max.
*1 For an automobile that received registration by the Road Vehicle Act or its vehicle number is specified by law as a vehicle compatible with E10, gasoline specifications for both oxygen and ethanol are relaxed to 3.7 mass% and 10 vol% max, respectively. *2 This specification is applicable to diesel oils without international blending of FAME (Fatty Acid Methyl Ester). Compulsory standards allow FAME upper blending limit of 5.0 mass%. In such a case, additional standards include: • Methanol: 0.01 mass% max. • Acid value: 0.13 mgKOH/g max. • Formic acid + Acetic acid + Propionic acid: 0.003 mass% max. • Acid stability: 0.12 mgKOH/g max. *3 3.5 mass % max. (In case the vessel is installed with sulfur oxide removal systems)
17 3. Safety and Environmental Measures of the Petroleum Industry
❺ Efforts to Global Warming Issues ■ Petroleum Industry’s Long-term Low-carbon Vision toward 2050 ■ Petroleum Industry’s Voluntary Action Plan for The government of Japan compiled the “Long-term Global Environmental Conservation Strategy under the Paris Agreement” for addressing PAJ formulated the “Voluntary Action Plan for global warming issue in June 2019. Prior to this, PAJ Global Environmental Conservation by the Petroleum formulated the “Long-term Low-carbon Vision for the Industry” in February 1997 to respond to Keidanren’s Petroleum Industry to 2050” in May 2019. initiative, and set a target to be achieved by FY2012 for the improvement of unit energy consumption at ■ Refineries’ Energy Conservation Measures oil refineries. Refineries implement a wide range of energy The target level of the unit energy consumption at conservation measures based on the accumulation oil refineries was initially set at a 10% improvement of such individual measures as follows:(1) Effective from the FY2010 level, but revised upward to a 13% use of heat (installation of highly efficient heat improvement in October 2007, taking into account the exchangers, mutual-use of heat among processing progress of the industry’s efforts so far. Since then, units, waste heat recovery units, etc.), (2) with the efforts of each company through the use Sophisticated operation control and installation of of sophisticated heat recovery units and efficiency high efficiency facilities (heat pump, co-generation improvement and optimization of refining facilities, system, high-efficiency power generator, promotion in FY2012, a 15% improvement was achieved from of computer control, etc.), (3) Efficiency improvement the FY1990 level. As a result, the improvement on the for power system (replacing with high-efficiency annual average of the FY2008-2012 period was 15%, motors, etc.), and (4) Large-scale improvement and exceeding the new target level of 13% compared with sophistication of refining processes (enhancement of the FY1990 level. hydrogen recovery, integration of multiple facilities, boiler consolidation, drastic reduction of steam ■ Petroleum Industry’s Action Plan for Low-Carbon consumption, etc.) Society In line with the basic policy of the “Commitment to a Low-Carbon Society” announced by Keidanren Fig:3-3 ■ Annual Energy Saving and Target in Japanese Refineries to succeed its “Voluntary Action Plan”, PAJ issued the “Commitment to a Low-Carbon Society for FY2030 Target 10 thousand kL 1 million kL the Petroleum Industry” in March 2010. In this 100 commitment, the new target is set to achieve an 90 energy saving volume of 530 thousand kiloliters 80 FY2018 679 thousand kL (KL) (crude oil equivalent) at refineries in FY2020 by 70 means of energy conservation measures after FY2010, 60 in comparison with a business-as-usual (BAU) case of 50 40 no energy conservation measures after FY2010, and FY2020 Target PAJ promotes further improvement in energy saving. Energy Saving 30 530 thousand kL Furthermore, responding to Keidanren’s call, PAJ 20 issued “Petroleum Industry’s Action Plan for a Low- 10 Carbon Society–Phase II”, to set a further target after 0 2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FY2030 FY2020, taking into consideration the ongoing plan. The Phase II plan aims to result in one million KL of energy saving at refineries in FY2030 on a crude equivalent basis compared with the BAU case.
18 3. Safety and Environmental Measures of the Petroleum Industry
Fig:3-4 ■ The Long-term Low-carbon Vision for the Petroleum Industry to 2050 (PAJ, May 2019)
The Petroleum industry actively aims to pursue simultaneous achievement of the “3E”(energy Basic Policy security, environmental concern and efficient supply) and contributes to challenge of solving global warming issue from both "energy supply" and "energy consumption" perspectives.
Challenge at Energy supply stage Challenge at Energy consumption stage
（1）Low carbon for petroleum-based fuel （1）Approach to reduce GHG emissions throughout the value chain by developing and promoting ①Reducing GHG emissions at refining stage, challenged highly functional products with excellent energy with conserving energy and further progress in world-class efficiency. refining process and promoting collaboration across 〈 〉 companies and industries. Examples ① ②Utilization of next-generation biofuels, reducing GHG Energy-saving lubricant (Automotive, Construction equipment, emissions in LCA and ensures sustainability. Machine tools) ②Highly functional products (Carbon Fiber Composite, （2）Expanding the use of renewable energy Organic EL compound, Materials for All Solid State Batteries. Electrodes for Li-ion batteries) ①Promote and expand a variety of renewable energy sources such as solar, wind (onshore and offshore), geothermal, （2）Challenge to tremendous thermal efficiency and biomass. improvements in internal combustion engines in ②Contributing to the realization of a hydrogen society terms of fuel quality.
Innovative Technologies for Ultra-Long-Term GHG Reduction Challenge(Carbon Recycling, etc.)
①Promote on the development of CCS-CCUS technology and business promotion (including EOR) in Japan and abroad ②The Challenge of the Ultimate Effective utilization of Oil through the Elucidation of the Molecular Structure of Oil by Petroleomics and the Other Technologies ③Promote technology development for further utilization of Renewable energy sources(as example: artificial photosynthesis) ④Consider the use of low-carbon alternatives to liquid fuels, such as synthetic fuels produced from CO2-free hydrogen, although expanding the utilize of electricity derived from Renewable energy sources is a prerequisite.
International ①Expanding the supply of high performance products overseas (lubricants, etc.) ②Technical cooperation on operational optimization accumulated in Japan Contribution ③Flare reduction in the Petroleum Development sector
Further reinforce company-wide governance system and promote initiatives to achieve a low-carbon Strengthening society, considering the realization of ESG and SDG's, including measures to combat global warming, as Governance one of the most important management issues.
❻ Utilization of Biomass fuels companies of PAJ established JBSL (Japan Biofuels Supply LLP, a limited liability partnership company) Biomass fuels can be produced from renewable to jointly procure bio-ETBE and related products. In materials such as agricultural crops and trees, and FY2007, the sale of bio-ETBE blended gasoline was they are considered to be an energy effective against launched and it was expanded in FY2008. After the global warming due to its carbon-neutral effect, in test marketing of bio-gasoline (containing bio-ETBE) which the amount of CO2 emitted during combustion during FY2007 and FY2008, the petroleum industry won’t be counted. In Japan the implementation introduced 200,000KL of bio-ETBE blended gasoline target amount of biomass fuels for transportation in FY2009, a year before the full-scale introduction in use was set to 500,000 KL in the Kyoto Protocol Target FY2010. Achievement Plan (April 2005). *1 bio-ETBE :Ethyl-Tertiary-Butyl-Ether synthesized from bio-ethanol and isobutylene. In January 2006, based on the request of the Bio-ethanol refers to ethanol produced from sugarcane, corn, Agency of Natural Resources and Energy, the and other sources, and the ethanol equivalent in ETBE is considered carbon neutral. As with MTBE (Methyl-Tertiary- petroleum industry announced a target plan to blend Butyl-Ether), which is not currently used, ETBE has a high octane bio-ETBE*1 produced from 360,000KL of bio-ethanol number, high performance as a gasoline additive, and almost no (210,000KL of crude oil equivalent) with gasoline in toxicity. FY2010, aiming to cooperate in the achievement of the government plan. In January 2007, the member Furthermore, according to the “Criteria for Use of Non-fossil Energy Sources”, indicated in November 19 3. Safety and Environmental Measures of the Petroleum Industry
2010, under the Law Concerning Sophisticated equivalent) for petroleum refiners for the five years Methods of Energy Supply Structures specified that from FY2023 to FY2027, which is included in the about 820,000KL of bio-ethanol (500,000KL of crude overall target of 500,000 KL of bio-ethanol (crude equivalent volume) is blended directly with gasoline oil equivalent). Furthermore, the amount of bio-jet or in the form of bio-ETBE for automobile fuels in fuels, equivalent to ethanol in terms of calorific value, FY2017, and each year’s target volume was set in after April 1, 2023 can be considered to be part of the phases. target amount of bio-ethanol. The member companies of PAJ has steadily *2 The next generation bio-ethanol: While the first generation achieved this target with the bio-ETBE method. bio-ethanol is produced from food based raw materials, the next generation bio-ethanol is produced from non-food raw The “Technical Review Committee for the materials such as cellulose from plants and trees, and algae. Utilization of Biofuels in Japan” was established in December 2017, in order to compile the basic ideas for the development of the criteria for FY2018 and Fig:3-5 ■ Self-sufficiency of Bio-ethanol in Major Countries beyond. In consideration of the issues of almost all Imported dependence on import, relatively high raw material Domestic 0% cost and competition with food, the committee has 100% 0% decided that the period for the next criteria should 20% be a "transitional period", in which the establishment 80% of a system for the full-scale introduction of the cost- effective and eco-efficient bio-ethanol (domestic 60% production and next generation) was given the 100% 100% 80% 98% highest priority from the perspective of the 3E (energy 40% security, environmental concern and efficient supply). According to the criteria indicated in April 2018, the Share in Ethanol Consumption (including non-fuel use) 20% annual target volume of 500,000 KL of crude oil equivalent is maintained for five years until FY2022. 2% 0% After that, the criteria for the utilization for the next Brazil USA EU Japan generation bio-ethanol*2, enforced on April 1, 2020, Note : based on FY2015 data for Japan and 2015 data for other countries Source : Biofuel Sustainability Study Group (March 2017) established the annual target of 10,000 KL (ethanol
Fig:3-6 ■ Biofuel Initiatives in the Petroleum Industry (Bio-Gasoline, Bio-ETBE)
April 2007-March 2009 FY2009 FY2010 FY2017 FY2018 Bio-gasoline Test Marketing Expanded Full Further ～FY2020 Sales Marketing Marketing Marketing Introduction of Distribution demonstration 210,000kL of crude 500,000kL of crude 500,000kL of crude Bio-ETBE FY2007: 50 service stations Bio-ETBE equivalent volume equivalent volume equivalent volume FY2008:100 service stations［ ］200,000kL Bio-ETBE Bio-ETBE Bio-ETBE ［ ］840,000kL ［ ］1,940,000kL ［ ］1,940,000kL
(kL) The Future Path to Biofuel Implementation（Image) 500,000 Initiatives requested Widely accepted time by the goverment The first generation Ethanol Targets after 2023 will be set based on the trend in 210,000 domestic technology development
Ethanol (crude oil equivalent) 2007 2009 2 011 2018 2020 2023 （FY） Test Marketing The next generation Ethanol Source : Based on METI
20 3. Safety and Environmental Measures of the Petroleum Industry
❼ Sustainability Standards for Biomass Fuel The sustainability standard of biomass fuel, based on the Law Concerning Sophisticated Methods of (1)Environmental issues such as competition with Energy Supply Structures in July 2010, followed the food and deforestation in the use and development of directionality that had been shown by the above- biofuels, as well as the reduction of greenhouse gas mentioned interim report. emissions over the entire life cycle of biofuels, have *LCA (Life Cycle Assessment): A method of assessing the been discussed and standards have been established environmental impact throughout the entire life cycle of production, use and disposal (sum up the amount of energy and for the sustainable utilization of biofuels in Europe material resources required and the environmental impact (carbon and the United States. Under such background, “The dioxide, SOx, NOx, etc.) generated). Biofuel Sustainability Study Group”, established in October 2008, has started its research and study on The aforementioned "Technical Committee for the biofuels in Japan. Subsequently, “The Study Group Utilization of Biofuels in Japan" held a discussion on Sustainability Standards for the Introduction based on the changes in the situation since the of Biofuel" was organized in July 2009 to develop criteria of the law on biofuels in July 2010. In Japan’s own standards and operating procedures. The response to the discussion, the judgement criteria of interim report issued in March 2010 was summarized April 2018 pointed out as follows: as follows: GHG (greenhouse gas) reduction effect (1)Raise the criteria for GHG reduction rate of through the life cycle assessment (LCA) required for biofuels to "55% or more compared to gasoline", biofuels should be at least 50% of the GHG emission from the perspectives of trends in other countries of gasoline. and effective use of biomass. (2)A high rate of self-sufficiency is necessary for a (2)Update the GHG emission standards for stable supply of biofuels, because the current supply gasoline and Brazilian sugarcane- derived ethanol by is limited to imports from Brazil and to a small part of incorporating CH4 and N2O emissions. domestic products. (3)Establish a new default GHG emission level for (3)The relevant ministries and agencies need to U.S. corn-derived ethanol which contributes to the work together to analyze the causes of competition supply source diversity. with food and develop action plans.
Fig:3-7 ■ The Effect of Bio-Ethanol on GHG Emissions Reduction through LCA
Less CO2 emissions than Gasoline ← → More CO2 emissions than Gasoline
Gasoline(Base) Crude oil production Crude oil transportation For Gasoline Refining and production No change of Combustion land use 38％ 62% reduction over gasoline
Grassland 38％ 62% reduction over gasoline 218% rise from gasoline Savanna 318% Ethanol from Brazil Sugarcane
No change of 49％ 51% reduction over gasoline land use Crop production Feedstock transport Grassland 1% reduction over gasoline 99％ Conversion For Ethanol 119% rise from gasoline Ethanol transport Ethanol from Corn U.S. Savanna 219％ Land use change
0 50 100 150 200 250 300
55% reduction over g-CO2/MJ gasoline Source: Technical Committee for the Utilization of Biofuels in Japan(Jan.26,2018)
21 Efforts to cope with Recent Disasters and 4 Enhance Resilience for Stable Oil Supply
❶ Japan’s Oil Stockpiling System sources at a time of temporary supply shortage”. At the outbreak of the third Middle East War in 1967, In response to OECD recommendation in 1962, Japan’s oil dependency reached 65% of the primary which obliged member countries to hold oil energy supply. With a rapid rise in risk awareness in stockpiling at a 60-day equivalent to the nation’s oil Japan, the oil stockpiling system in Japan virtually demand, the Energy Committee under the Industrial started from fiscal year (FY) 1972. Structure Council made a proposal in December The first oil crisis, occurred in 1973, caused great 1963 for the necessity of oil stockpiling, stating that turmoil worldwide, including Japan. For this reason, “holding a certain level of oil stockpiling meets the "Expansion Plan for Private Sector Oil Stockpiling the requirement for energy supply security as a Obligation to 90 Days" was announced in October transitional measure to rectify a supply and demand 1974 to develop a reinforced oil stockpiling system in imbalance until converting to alternative supply Japan. In November 1974, the 18 western countries
Fig:4-1 ■ Current Status of Oil Stockpiling in Japan (as of Mar 2020) Joint Stockpiling with Private Stockpiling Government Stockpiling Oil Producing Countries
Stockpile Days 86 days 138 days 6days
Stockpiling Volume 28.5 million kl 45.8 million kl 1.8 million kl 90days of net import together with Obligation Days 70 days of domestic demand one-half of the joint stockpiling of oil- --- producing countries In sealed designated storage tanks Through production (Oil products are held through Through commercial stocks of oil- Holding Method and distribution processes production and distribution producing countries processes) Crude oil: ① Tanks of national stockpiling bases Private sector tanks in refineries ② Tanks borrowed from Private sector tanks contracted by oil- Holding Location and oil terminals private sector producing countries Oil products: Private sector tanks in refineries and oil terminals
Crude oil : 50% Crude oil : 96.9% Composition Crude oil:100% Oil products: 50% Oil products: 3.1% ①10 national stockpiling bases (2/3 of Oil refiners and importers government reserve) (It is, however, possible for the joint Private oil companies (Management Administrative Body ②Private oil companies (1/3 of stockpiling companies to act for such on consignment) government reserve): management) (Management on consignment) ①strong psychological effect on ①Private oil tanks are leased to national ①Prompt supply to distribution the market when the government oil companies of oil-producing markets as a large part of stockpiles announces its decision to release its countries with government support. are held at refineries and oil stockpiling to increase oil supply in The companies use the tanks as Effect of terminals the market storage bases for East Asia, while Stockpile Release ②Flexible release of stockpiles ②Reduced mobility of released giving priority to the supply of stocks depending on crude procurement stockpiling, compared with the to Japan in the event of a shortage of status and seasonal demand private sector release, as reserves supplies to Japan. fluctuation are stored at remote national ②Oil need to transport from the private stockpiling bases oil terminals to the refineries by tanker. ①2nd Oil Crisis (Mar 1979~Aug 1980) ②Gulf Crisis (Jan~Mar 1991) ③Hurricane Katrina aftermath Cases of (Sep~Dec 2005) None None Stockpile Release ④The Great East Japan Earthquake (Mar~May 2011) ⑤Libyan situation (Jun~Dec 2011)
Subsidy for oil purchasing costs Government's budget Subsidy for tank leasing costs Financial Measures and tank construction costs (Petroleum and Coal Tax) (Petroleum and Coal Tax) Part of product cost Part of product cost Part of product cost Cost Recovery (passing the cost on to consumers is (passing the cost on to consumers is (passing the cost on to consumers is expected) expected) expected)
22 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
established the International Energy Agency (IEA) were achieved: 30 million kiloliters (KL) in February under of the Organization for Economic Co-operation 1989, and 50 million KL in February 1998. During this and Development (OECD). 20-year period, 10 national oil stockpiling bases were With the promulgation of the Petroleum Reserve constructed across the country. In accordance with Law in 1975, such measures by the government the expansion of government stockpiling, the private were legislated as (1) setting the stockpiling target, sector stockpiling was reduced by 4 days each year (2) putting an obligation on refiners, marketers and from 1989 to 1993, and since then a 70-day equivalent importers of petroleum to hold oil stockpiling at least oil stockpiling system (the private sector’s 70-day above the level of their basic obligation volumes, equivalent volume obligation) has been maintained. and (3) lowering the basic obligation volume for a From FY2015, a method to calculate the government fixed period, especially when it is deemed necessary stockpile level was changed from quantity-based to to secure a stable supply of oil in the event of an days-based, and it was decided to secure its amount oil supply shortage in Japan. In addition, various equivalent to about 90 days of net imports, including measures were taken such as providing more one-half of the joint stockpiling with oil-producing low-interest loans (expanding interest subsidies), countries. raising the loan ratio of the Japan Development The deregulation trend of the petroleum industry Bank’s loan for oil storage facilities, establishing the has also affected the Petroleum Reserve Law. With capital subscription scheme to the joint stockpiling the abolition of the Provisional Measures Law on the companies from Japan Petroleum Development Importation on Specific Refined Petroleum Products Corporation, currently JOGMEC (Japan Oil, Gas and (Fuel Import Restriction Law) in 1996, the import of Metals National Corporation) in order to lessen the petroleum products was substantially liberalized, burden of the enormous cost of funds associated so the Petroleum Reserve Law was also amended with the buildup of stockpiles. After coping with to stipulate the requirements for new entrants of oil the second oil crisis in 1979, the 90-day equivalent importers. oil stockpiling system (the private sector’s 90-day In January 2002, the Petroleum Industry Law was equivalent volume obligation) was established in abolished, and the Petroleum Reserve Law was April 1981. renamed the new Oil Stockpiling Act. From the Government stockpiling by Japan National Oil viewpoints of ensuring fulfillment of oil stockpiling Corporation (currently JOGMEC) was started in 1978. obligations as well as strengthening the foundations The target volumes of the government oil reserve for emergency responses, the following provisions
I Joint Stockpiles with oil producing countries Fig:4-2 Oil Stockpiling Obligation Trends: Volume and Days (fiscal year end) Private Stockpiles (156) (163) Government Stockpiles 10,000 (164) (163) (168) (150) 9,332 9,393 (156) (166) (169) (163) (174) 9,141 9,080 9,023 (166) 9,043 (177) (184) (185) Unit: 10,000kl, (days) (142) 8,953 8,806 8,960 8,930 8,902 (199) (197) (193) 8,743 8,614 8,670 (193) 8,590 (199) (207) 8,278 8,301 8,343 8,406 (208) 8,075 8,147 7,997 (215) (222) (229) 7,782 7,716 7,745 8,000 (127) (2) 7,614 (100) (4) (95) 7,098 (4) 6,984 (6) (5) (6) (90) (88) 6,593 5,954 6,048 6,000 (90) (81) (88) (90) (92) (88) (74) (79) (80) (79) (72) (78) (77) (78) (74) (74) (78) (79) (77) (81) (84) (79) (84) (83) (83) (80) (81) (78) (79) (85) (86)
4,000
2,000
(7) (7) (10) (35) (54) (76) (78) (82) (85) (84) (85) (89) (91) (88) (92) (90) (95) (99) (102) (115) (114) (113) (102) (110) (117) (122) (126) (131) (132) (138) 0 1977(FY) 1978 1979 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2 011 2012 2013 2014 2015 2016 2017 2018 2019
Applied Cases The Second Oil Crisis The Gulf War Hurricane Katrina The Great East Japan Earthquake for Stockpiling Releases Mar 14～Mar 21～May 20, 2011 Mar 1979～Aug 1980 Jan 17, 1991～Mar 6, 1991 Sep 7, 2005～Jan 4, 2006 70days 67days 45days (Drawdown of private Based on Application 82days 78days (4days) 70days 67days (3days) → → stockpiling obligation → → (3days) (25days) volume) (Based on application)
Libyan Situation Volume: Product equivalent basis Jun 24, 2011～Dec 31, 2011 Days: Oil Stockpiling Act basis 70days → 67days (3days) Source: METI
23 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
were amended in the new act: The Great East Japan Earthquake: Experience 1.Notification requirements for business ❷ and Lessons Learned commencement of oil refiners, distributors and In the aftermath of the Great East Japan Earthquake retailers; clarification of registration requirements for on March 11, 2011, while the supply of electricity and oil importers city gas was stopped, oil, which excels in handling, 2.Clarification of the provisions concerning a storage and transportability, played a significant role release order of the government oil stockpiles by as the most independent and distributed source of the minister of the Ministry of Economy, Trade and energy supply. Oil was effectively used as fuel for Industry (METI) hospitals’ emergency power generation, heating at 3.Recommendation to increase the crude oil evacuation centers and emergency vehicles. processing volumes above planned volumes Shipping bases such as refineries and oil terminals Then in 2006, the Petroleum Policy Subcommittee also suffered severe damage from the earthquake. under the Petroleum Council’s Advisory Committee Among nine refineries located in the Kanto and for Natural Resources and Energy recommended Tohoku regions, six refineries halted production, that, from a viewpoint of the necessity for forming a accounting for 1.4 million barrels per day or about responsive oil stockpiling system, the government oil 30% of Japan’s total refining capacity. Oil terminals product reserves should be introduced. As a result, on the northern Pacific coast were unable to carry kerosene stockpiling has been implemented since out product shipment although there were adequate 2009. inventories. Because of the paralyzed social In FY2007, the Subcommittee on Next Generation infrastructure such as harbor facilities and roads, Fuels and Petroleum Policies made a review based together with logistic obstacles, supply of petroleum on active promotion of international cooperation for products could not be secured for some time in parts oil stockpiling with countries in and surrounding Asia, of the region. where oil consumption is rapidly increasing. It also The government received about 5,000 requests for discussed Japan’s cooperation toward stabilization of various emergency relief supplies from the disaster the international oil market in an emergency, taking areas, of which about 1,400, or 30 percent, were into account the possible direct release of its stockpile for petroleum fuels. Furthermore, PAJ set up an to overseas countries. In line with such movements, operation center to cope with urgent support requests an intergovernmental agreement on preferential from the Prime Minister’s Office and the Ministry of sales and purchase from the crude oil stockpile Economy, Trade and Industry (METI), and responded was concluded between Japan and New Zealand promptly on a 24-hour basis. in 2007. Then a Japanese oil company was able to With the support of the prefectural government as make a bid for “the Rights to Purchase Oil Stockpile well as the Ministry of Land, Infrastructure, Transport in an Emergency” conducted by the government and Tourism, two oil terminals in Shiogama, which of New Zealand, and some firms successfully won have large-scale facilities, to which the quake those international bids. Additionally, the Japanese damage was relatively slight, resumed shipping their government promoted a joint stockpiling project with remaining products on March 17 (6 days after the oil producing countries. The project scheme is that disaster), and started receiving products from coastal oil producing countries can reserve their crude oils tankers on March 21. In this connection, five rival oil in Japan and use them commercially under normal companies set up a cooperative framework to jointly times; however, in an emergency, Japanese oil utilize the facilities of those companies in Shiogama. companies receive preferential crude oil supply from Although there was no institutional framework based their reserves under this agreement. Such crude oil on laws and agreements at that time, PAJ member reserves in Japan were started by Abu Dhabi National companies built various cooperation systems beyond Oil Company (ADNOC) in 2009 and Saudi Arabia’s the boundaries of the companies. state-owned oil company (Saudi Aramco) in 2010. This scheme is expected to reinforce energy security and at the same time enhance the formation of strategic relationships with oil producing countries.
24 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
Measures taken after the Great East Japan emergency relief supplies to a site where a tank truck ❸ Earthquake could not unload fuels. To cope with it, the industry Based on the lessons learned from the earthquake, maintains and enhances its drum filling facilities. At it was revealed that a major challenge for the service stations (SS), disaster response measures petroleum industry is to maintain and strengthen the were initiated to install a back-up power source, to supply chain to ensure a stable supply of fuels to end put hand-driven pumps in place, to store emergency consumers even at the time of a disaster in order to use materials and to prepare SS as temporary strengthen its emergency response capabilities in evacuation sites. both facilities and systems On the system side, as sharing information In terms of facilities, the industry has been between oil companies and their shipping bases in reinforcing the seismic retrofitting works at shipping the disaster area at the time of earthquake took a long terminals, waterproofing works for electrical time, the work to strengthen communication means equipment, and installation of emergency power such as deploying satellite phones is proceeding. supplies. At the current 22 refineries in Japan, various Petroleum Association of Japan (PAJ) is working to works to meet earthquake-resistant and liquefaction establish a system to centralize information from standards that exceed the requirements of existing each oil company in an emergency occasion. In this laws and regulations have been taken. Drum regard, PAJ issued in December 2013 a guideline for shipment had been reduced because of its small lot the Business Continuity Plans (BCP) for oil supply at size and inefficiency of handling in normal times. affiliated companies, and the member companies However, at the time of an earthquake, there were have formulated their BCP conforming to the many urgent requests for small-lot drum deliveries as guideline.
Fig:4-3 Response to the Great East Japan Earthquake
○ Strengthen production system of refineries in operation (Raising operating rate, increasing production capacity, etc.) ○ Urgent import of gasoline and restricting product export (Increasing domestic supply) ○ Shipping petroleum products to disaster area from western Japan and Hokkaido (Coastal tanker, tank car and tank truck) ○ Cooperation among oil companies in the disaster area. (Joint use of oil storage facilities) ○ Shifting of tank trucks from western Japan to the disaster area (Special engagement of approximately 300 trucks) ○ Public relation activities in the disaster area for relieving consumers’ anxiety such as informing them of service stations in operation
I Operating Situation of Refineries and Oil Terminals in Tohoku and Kanto Areas March 12 (aftermath of the quake) March 21 HACHINOHE Refining Capacity in Japan Refining Capacity in Japan AOMORI AOMORI 3.12 million b/d 4.0 million b/d AKITA AKITA HACHINOHE SAKATA SAKATA MORIOKA MORIOKA First tanker entered KAMAISHI NIIGATA SENDAI to Shiogama Port NIIGATA SENDAI KAMAISHI (March 21) KESENNUMA KESENNUMA SHIOGAMA KORIYAMA KORIYAMA SHIOGAMA Oil terminals in ONAHAMA Oil terminals in ONAHAMA Tokyo area Drum shipment to Tokyo area affected areas HITACHI HITACHI (March 20 in Chiba) Partial shipment Partial shipment KASHIMA Able to ship KASHIMA Able to ship Suspended shipment Suspended shipment
KEIHIN(KANAGAWA) KEIYO(CHIBA) Expressway KEIHIN(KANAGAWA) KEIYO(CHIBA) Expressway
Refinery Refinery 3 Operating / 6 Shut down 6 Operating / 3 Shut down Normal shipping operation is Oil terminals on the Pacific coast stopped in most of Oil Terminal are partially open, and most of Oil Terminal 6 Open for delivery 18 Open for delivery East Japan oil terminals 23 Closed (restricted) those in the Tokyo area are open 11 Closed (restricted)
25 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
supply petroleum products to critical sites such as ❹ Information Sharing with Local Governments evacuation centers and hospitals should be launched by organizing in advance a cooperative structure In the Great East Japan Earthquake, each primary between petroleum reserve management companies oil distributer (Motouri) responded to emergency and transportation companies to enhance prompt supply requests, via the central government or local and assured deliveries. governments, for fuels to important institutions In November 2012, the Oil Stockpiling Act has such as hospitals. However, due to incorrect or been amended to make it possible to release of inadequate information such as the fuel kind and tank the government crude oil reserves at the time of inlet specifications by the requesters, some delivery a domestic oil supply shortage in a certain area problems have occurred. due to a disaster, in addition to oil supply shortage As a preliminary preparation for responding quickly from overseas. On the other hand, the government and smoothly to urgent supply requests from the petroleum product stockpiling is now composed affected areas in the event of a disaster, PAJ has of four types of oil, i.e. gasoline, diesel oil and been working on gathering necessary information heavy fuel oil A, in addition to the aforementioned beforehand on fuel supply to key institutions which kerosene. Moreover, based on the amended act, are designated by local governments and authorities in the event of a large-scale domestic disaster that since 2012. causes a shortage of oil supply to a particular region, To date, PAJ have concluded the Memorandum oil refiners and Motouri have jointly formulated the of Understanding for information sharing with 46 "Oil Supply Coordination Plan in Disaster" for each of prefectures, eight governmental organizations and the 10 regions nationwide to secure a reliable supply, seven designated public institutions. (As of March 31, and have submitted it to METI. The plan calls for the 2020) establishment of a joint operation room to serve *In 2008, PAJ has signed an agreement with the Tokyo as a command center for the industry to (i) collect Metropolitan Government on the stable supply of petroleum fuels in the event of a large-scale disaster and is implementing the and share information on each company's shipping same initiative. terminals, logistics, affiliated service stations (SS), etc., (ii) respond to urgent supply requests for petroleum products received via the government, Disaster Response due to Amendments to the ❺ Petroleum Reserve Law and (iii) share the use of other companies' shipping terminals when a company’s own shipping facilities is At the time of the Great East Japan Earthquake in no longer available due to damage or other reasons. March 2011, the petroleum industry made its utmost In the event of a major disaster, the Minister of efforts to stably supply oil products from refining Economy, Trade and Industry (METI) can recommends to all segments of distribution. Taking into account that refiners and oil refiners and Motouri to take the the lessons learned from this great earthquake, the measures specified in the plan. petroleum industry is advocating formulation of PAJ has been conducting the training stipulated an agile and flexible stockpiling system to control in the plan every year to enhance the proficiency disorders arising from a shortage of petroleum level of disaster response capabilities and to study products, and made the following proposal to fulfill a and develop countermeasures for the various issues stable oil supply at a time of disaster: learned from the training sessions. At the training 1. The government’s reserve of petroleum products held after 2015, the participants were not given the should be built up as a last resort of oil supply when disaster drill scenarios in advance to make it practical. the usual product and commercial distribution is PAJ is also striving to improve the industry's interrupted. decision-making capability. 2. Such government product reserves should be kept at refineries, etc. as an operating inventory to secure mobility and quality maintenance (a unified Response of the oil industry after the ❻ Kumamoto Earthquake public/private storage method). 3. For securing logistics, a system to directly The Kumamoto earthquake on April 16, 2016
26 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
was the first disaster in which the “Oil Supply appropriate response in the Kumamoto earthquake, Coordination Plan in Disasters” under the Oil the industry was able to secure oil supplies to the Stockpiling Act. disaster areas from an early stage. Based on this plan, PAJ held the joint operation The industry have worked to ensure a stable room meetings held every day at noon from the day supply of fuel in the face of various disasters since of the disaster until April 21 to share information on 2018, however, new lessons and challenges were shipping facilities, distribution, etc. of oil refineries encountered. Specifically, during the heavy snowfall and Motouris. In addition, taking into account the in Fukui Prefecture in February 2018, the removal of government response policy, PAJ examined and snow on the roads from an oil terminal to an urban made decisions on the oil industry's response area was delayed and impeded the fuel supply policies. by tank trucks. In the case of the torrential rains in Specifically, on the day of the disaster, PAJ western Japan in July 2018, the traffic interruption of confirmed with the member companies that there some roads due to landslides and the traffic jam on was no major damage to their shipping terminals detour roads hindered the quick supply of fuels. In the and distribution. The member companies decided aftermath of the East Hokkaido Iburi Earthquake in to reinforce their shipping capabilities to ensure oil September of the same year, during the power outage supplies to the affected areas by continuously using throughout Hokkaido, each Motouri made utmost back up tank trucks from the surrounding areas and efforts to continue fuel supply from its oil terminals extending the operating hours of their shipping by using emergency generators. However, in some terminals. They also shared information on their areas tank trucks could not be operated due to the operating conditions of their affiliated SS in and power outage of traffic lights. In addition, Typhoon near the affected areas, aiming at early restoring SS No.15 in September 2019 caused power outages in a operations that had to be restricted or suspended. wide area in Chiba Prefecture and prolonged power Furthermore, as a countermeasure against wide-area outages in some areas. As a result, the refueling power outage in the Aso area, PAJ responded to the services at some SS had to be suspended. The oil urgent request from Kyushu Electric Power Co. Inc. industry is addressing these issues while working to supply diesel oil, as a power generation fuel for a with related parties. high-voltage generator truck. With such prompt and
Fig:4-4 ■ Oil Supply Coordination Plan in Disaster
Shortage of oil supply to a particular area
METI Minister recommends oil companies to take the measures specified in the Plan
Joint Operation Room (Review of the general issues relating to oil supply in the region)
Information Office (collect and share information on company’s terminals, SS, etc.) request request request Supply request
Emergency Response Office METI (respond to urgent supply request from the government) Oil Companies Local Government WG for Joint Use of Terminals and Motouri) (Refiners Prime Minister's Office Minister's Prime (allocation of tanks, shipping schedule, etc.) (Disaster Management Headquarters)
Oil Products Supply
27 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
Deregulation of Traffic Restrictions for Using Development and Enhancement of Effective Oil-based ❼ Long Tunnels, etc. ❾ Equipment for Disaster Responsive Capability
Tank trucks loaded with oil as a hazardous material Taking into account the changes after the Great East is restricted from using long, underwater or waterside Japan Earthquake, PAJ has made efforts to develop tunnels. However, in light of the experiences of oil-based equipment which excels disaster response long-distance and long-time deliveries of fuels by capabilities, and also conducted activities to promote tank trucks to the affected areas during the Great the use of kerosene and other oil-based equipment East Japan Earthquake, PAJ has requested the such as by encouraging local governments to use government to relax the traffic restrictions on long those equipment at the disaster prevention centers. tunnels, etc. in the event of a disaster. As a result, ■ Petroleum Energy Chosen by Consumers in August 2016, the Ministry of Land, Infrastructure, Kerosene has been the most familiar energy for Transport and Tourism (MLIT) announced its direction heating and hot water supply to consumers because to ease the restrictions on the premise of so-called of its easy handling. To continue to be the energy of "escorted passage", in which a guided vehicle leads choice for consumers in the future, PAJ has worked tanker trucks in a caravan only in times of disaster. to develop and disseminate more environmentally In response to this, the four parties concerned, friendly and economically efficient oil-based namely, the road administrators of each long tunnel, equipment. MLIT, METI and PAJ, agreed on policies regarding the basic passage method. As of the end of August ■ Development and Enhancement of “Eco-Feel” 2020, 12 locations have been deregulated after PAJ, jointly with the Japan Industry Association of consultation with the concerned prefectural public Gas and Kerosene Appliances, the manufacturers’ safety commissions. organization of the high-efficiency oil-based water In addition, in delivery to Hitoyoshi area in heater, “Eco-Feel”, has enhanced the use of "Eco- Kumamoto Prefecture, which was severely damaged Feel", which can improve thermal efficiency by by the torrential rain in July 2020, the normal delivery reusing waste heat from combustion, save kerosene route was cut off. As an alternative route, Kyushu and reduce CO2 emissions. Expressway (Higo tunnel) was used for emergency ■ Stand-alone “Eco-Feel” Excels in Disaster traffic. This was the first case that a long tunnel was Response Capability used during a disaster. The Great East Japan Earthquake caused widespread power outages that made all electronically controlled electric, gas or oil-based ❽ Advocacy Activities to local governments water heaters unusable. Based on this experience, in April 2012, new “Eco-Feel” with a self-contained PAJ in cooperation with the National Federation disaster prevention function was developed so that Petroleum Commercial Association (NFPCA/ it can be operated even during a power outage. The Zensekiren) and its branch organizations of each stand-alone type “Eco-Feel” is a high-efficiency water prefecture, proposes the introduction of petroleum heater that can make hot water supply to a standard equipment and fuel stockpiling for disaster family of four persons for about three days even prevention to local governments that are developing during a power outage. disaster response systems. PAJ also explains to local government officials to enhance their understanding ■ Kerosene is Friendly to the Environment and of the industry efforts for the system development Household Economy to maintain stable oil supply. PAJ has visited more There are various sources of energy, besides than 1,200 municipalities in nine years from FY 2011 kerosene, familiar to us such as gasoline and to FY2019. Along with such visits, the industry also electricity. It is not widely known that the amount of carrying out publicity activities to raise awareness CO2 emissions attributable to kerosene is about half of the "Full Tank Refueling of Your Car and Keep that of electricity when compared with the same heat Extra Polyethylene container of kerosene Campaign" (1kW) bases. This is because about 63% of waste heat initiated by the NFPCA. loss and transmission lose occurs before electricity
28 4. Efforts to cope with Recent Disasters and Enhance Resilience for Stable Oil Supply
reaches each home from the power plants. Kerosene, which is considered to emit a large amount of CO2, is actually an environmentally friendly energy source. In addition, the price of kerosene at the same heat rate (1kW) is about 1/3 of the cost of electricity and 2/3 of city gas prices. Consequently, kerosene is more economical and friendly to household expenses than other energy sources. ■ Kerosene is a standalone energy source with excellent disaster response Kerosene can be stored in decentralized tanks and be utilized as an energy source in case of disaster when ”system energy” sources such as electric power and town gas supplies are cut off. A survey of 1,000 adult men and women in Iwate, Miyagi and Fukushima areas, which were struck by the Great East Japan Earthquake, showed that about 52% of them used kerosene immediately after the quake. In the evacuation facilities, the kerosene heaters were ubiquitously utilized as shelter residents’ heating equipment. Furthermore, many lives of people injured in the disaster were saved in hospitals with onsite oil-driven electric power generation facilities. In December 2018, a self-sustaining disaster- resistant FF type oil heater, which can be heated even during power outages, was also launched on sale.
29 Appendix Profile of Petroleum Association of Japan (PAJ)
Petroleum Association of Japan (PAJ), incorporated (1) Reinforce various emergency response in November 1955, is composed of 11 refiners and capability including national oil stockpile, primary distributors in Japan. Its main activities are: big earthquake, infectious disease and cyber 1. to collect the opinions of the member companies security and compile proposals to be incorporated in the (2) Maintain petroleum supply network through government petroleum policy. reviewing safety regulations on service station 2. to survey the situation of the petroleum industry, (3) Provide timely and appropriate information in and emergencies 3. to provide information relating to the petroleum 3.Environment and social responsibility industry. (1) Cope with climate change issues including long-term low carbon visions toward 2050 (2) Cope with Tokyo 2020 Olympic,Paralympic I. Activities TDM project PAJ deals with all matters concerning the refining (3) Enhance voluntary safety management action and marketing of petroleum products. The main plan (Risk-based approach) functions by PAJ are as follows: (4) Implement PAJ Major Oil Spill Response Program 1. Publishing information on important issues for the 4.PR activities for better public understanding of the petroleum industry petroleum industry 2.Advocating the industry’s opinions and submitting (1) Provide timely and appropriate transmission proposals to the government, business of information in emergencies associations, the media and the general public (2) Execute timely and effectively the essay 3.Researching and coordinating activities related contest about petroleum in the educational to important petroleum issues and providing stage information on such issues 5.Relating activities 4.Undertaking governmental subsidy programs (1) Support the business of the Japan National such as the “Major Oil Spill Response Program”, Committee for the World Petroleum Council including international conferences (2) Deal with labor policy issues concerning the 5.Enhancing communication and understanding petroleum industry among member companies
Ⅱ. Main Activities and Projects in FY2020
1. Improvement and reinforcement of the petroleum industry’s business structure (1) Advocate deliberations on the new energy policy (2) Offer opinions to strengthen international competitiveness of the industry (3) Offer opinions to the deregulation of the industry and refinery safety (4) Appropriately handle tax revision (5) Offer the formation of a fair and transparent domestic petroleum market (6) Promote broad use of PAJ’s higher efficient oil utilization system for heating (7) Provide information and statistics data of the petroleum industry 2.Emergency response measures to secure stable supply of petroleum products
30 Appendix. Profile of Petroleum Association of Japan (PAJ)
■ Executives ■ Management and Committees = Sub-committees President Petroleum Distribution Laws Tsutomu SUGIMORI Representative Director General Assembly Auditor Chairman of the board, Group CEO SS Technological Issue ENEOS Holdings, Inc. Distribution Committee Vice-President Aviation Shunichi TANAKA Board of Standing President Board of Directors Directors Representative Director Petroleum Energy System Cosmo Oil Co., Ltd. Vice-President Shunichi KITO Committee of Policy Planning Representative Director & Chief Executive Officer Managing Directors Committee Idemitsu Kosan Co., Ltd. Senior Managing Director Environment & Safety Shinya OKUDA Environment & Safety Committee Managing Director Facilities Management Uichiro YOSHIMURA Policy Planning Managing Director Nobuaki OSHIO Stockpiling Global Environmental Issue
Labor Policy Fules Technology
Technical Committee Refining Technology PAJ Member Companies (11) Quality Control • Idemitsu Kosan Co., Ltd. • TOA OIL CO., LTD. Associated Organizations • KASHIMA OIL CO., LTD. • Taiyo Oil Company, Limited Oil Statistics Committee Finance • Fuji Oil Company, Ltd. Taxation & Finance Committee • Cosmo Oil Co., Ltd. Refining Petroleum-related Taxation • Cosmo Oil Marketing Co., Ltd. • ENEOS Corporation Marketing • Kygnus Sekiyu K.K. • SHOWA YOKKAICHI SEKIYU CO., LTD. • Seibu Oil Co., Ltd. PAJ Oil Spill Cooperative (POSCO) Inland Transportation Transportation Committee Marine Transportation
Japanese National Committee for ISO TC28 ISO: International Standardization Organization TC: Technical Committee
JIG Japan Public Relations Committee Public Relations JIG: Joint Inspection Group
Crisis Management Crisis Management Committee Cybersecurity
31 Appendix. Profile of Petroleum Association of Japan (PAJ)
■ Management and Committees = Sub-committees
Petroleum Distribution Laws General Assembly Auditor SS Technological Issue Distribution Committee Aviation Board of Standing Board of Directors Directors Petroleum Energy System
Committee of Policy Planning Managing Directors Committee
Environment & Safety Environment & Safety Committee Facilities Management Policy Planning
Stockpiling Global Environmental Issue
Labor Policy Fules Technology
Technical Committee Refining Technology
Quality Control
Associated Organizations
Oil Statistics Committee Finance Taxation & Finance Committee Refining Petroleum-related Taxation
Marketing
PAJ Oil Spill Cooperative (POSCO) Inland Transportation Transportation Committee Marine Transportation
Japanese National Committee for ISO TC28 ISO: International Standardization Organization TC: Technical Committee
JIG Japan Public Relations Committee Public Relations JIG: Joint Inspection Group
Crisis Management Crisis Management Committee Cybersecurity
32 Appendix. Profile of Petroleum Association of Japan (PAJ)
Location of Refineries and Crude Distillation Capacity in Japan (as of Oct 2020)
(Unit: Distillation Capacity in b/d)
Idemitsu (Hokkaido) 150,000
ENEOS (Mizushima) 350,200
ENEOS (Marifu) 120,000
ENEOS (Sendai) 145,000
Seibu (Yamaguchi) 120,000
ENEOS (Oita) 136,000
Kashima (Kashima) 203,100
Cosmo (Chiba) 177,000 ENEOS (Chiba) 129,000 Idemitsu (Chiba) 190,000 Fuji (Sodegaura) 143,000
ENEOS (Kawasaki) 247,000 Toa (Keihin) 70,000
ENEOS(Negishi) 270,000
Idemitsu (Aichi) 160,000
Taiyo (Shikoku) Cosmo (Yokkaichi) 86,000 138,000 Showa Yokkaichi (Yokkaichi) 255,000
Cosmo (Sakai) 100,000 ENEOS (Sakai) 141,000
ENEOS (Wakayama) 127,500
TOTAL: 21 Refineries (3,457,800 b/d)
33 34 Petroleum Industry in Japan2020
Petroleum Association of Japan
Petroleum〒100-0004 東京都千代田区大手町1-3-2 Association of Japan KeidanrenTEL（03）5218-2305（広報室） Bldg., 3-2,1-chome, Ohtemachi, Chiyoda-ku,FAX（03）5218-2321 Tokyo 100-0004 Publichttps://www.paj.gr.jp/ Relations Tel. 81-3-5218-2305 Fax. 81-3-5218-2321 http://www.paj.gr.jp/ 今日の 石油産業 2020