Showa Shell Sekiyu KK and Mitsubishi to build a pipeline at petrochemical complex for feedstock supply

28-May-11

Japan's fifth-largest refiner Showa Shell Sekiyu KK and Mitsubishi Chemical Corp will build a pipeline at a petrochemical complex to supply raw materials and fuel to each other, the Nikkei reported. The collaboration is expected to begin by fiscal 2013. As per Reuters, work on the pipeline, estimated to cost slightly above 7 billion yen (US$85.4 million) will begin this fiscal year. Mitsubishi Chemical will receive heavy oil from Showa Yokkaichi, a unit of Showa Shell, and restart a mothballed boiler that will generate electricity and steam to be sent to its partner, the newspaper reported. Showa Yokkaichi will supply light oil and propylene -- a basic material for petrochemicals -- to the unit of Mitsubishi Chemical Holdings Corp.