Japan's largest oil wholesaler Nippon Oil Corp. and Japan Energy Corp. have entered into a 10-year tie-up accord, automatically renewed under a contractual clause. The two have jointly agreed to develop fuel cell technology and deliberate joint operations of neighboring refining and petrochemical facilities as well as the joint use of facilities for transporting petroleum products and the consolidation of the two firms' oil storage facilities. The companies struck the broad-based agreement at a time the two domestic players have been unable to sufficiently pass on higher costs of crude oil to the retail prices of the products amid intense competition and have been forced to see profits squeezed.
The tie up will consider implementing joint operations of Japan Energy's refinery and Nippon Oil's petrochemicals factory located adjacently in Kurashiki, Okayama Prefecture
The refinery is designed to lay emphasis on diesel oil and kerosene, and the petrochem plant is designed to put emphasis on producing benzene, toluene and propylene.
21-Jun-06 
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