As demand for gasoline declines due to decarbonization, ENEOS Holdings, the largest oil retailer, has decided to close the Wakayama Refinery in Arida City, Wakayama Prefecture.
The Wakayama Refinery facing the Kii Suido is a historic refinery that started operations in 1941 during the Toa Fuel Industry era.
With a crude oil processing capacity of approximately 127,500 barrels per day, it produces a wide range of products such as fuels such as gasoline, lubricating oils, and petrochemicals.
However, the company has decided to close this refinery amid declining demand for gasoline due to the declining population in Japan due to the improvement of fuel efficiency and electrification of automobiles.
It seems that the company as a whole has decided that it is necessary to improve production efficiency.
ENEOS is accelerating the reorganization of refineries by suspending production at the Muroran Plant in Muroran City, Hokkaido in 2019, and by suspending the refining business at the Osaka Refinery in Takaishi City, Osaka in 2020.
On the other hand, the company is focusing on the hydrogen business, which is attracting attention as next-generation energy, and is proceeding with a transformation of its business structure, such as acquiring a major renewable energy company for about 190 billion yen.