Slowing domestic fuel demand in Japan has eroded refiners' margins, making it hard for them to pass on higher crude oil costs to retailers and prompting them to look to refinery projects overseas. In a move that marks the Japanese industry's first overseas refinery investment, four Japanese firms have agreed to join a new Qatari refinery project. Japan's refiners seek to explore more business opportunities in the natural gas-rich Gulf state by investing in Qatar Petroleum's Laffan Refinery, which plans to build a 146,000-bpd plant in Ras Raffan Industrial City in Qatar.
The project is expected to cost US$800 mln, with Idemitsu and Cosmo Oil, Japan's No 3 and No 4 refiners, to take a 10% stake. Mitsui and Marubeni will each take 4.5% stake. Exxon Mobil and Total hold 10% each and Qatar Petroleum's holding will scale down to 51%. The new refinery is expected to come onstream in 2008 and use condensate as a feedstock.
30-Nov-06 
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