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JXTG Energy and SDK Receive Subsidy for Project to Strengthen Bases of Petroleum Complexes in Oita Complex Area

To whom it may concern:

July 24, 2018
JXTG Nippon Oil & Energy Corporation
Showa Denko K.K.

A joint project of JXTG Nippon Oil & Energy Corporation (JXTG Energy, President: Katsuyuki Ota) and Showa Denko K.K. (SDK, Tokyo: 4004, President: Kohei Morikawa) to strengthen cooperation between oil refinery and petrochemical complex in Oita complex area (Oita City, Oita Prefecture) has been adopted as a subject for the “2018 Subsidy Program to Support Projects to Enhance Resilience of Oil Supply System” (a program to subsidize projects to strengthen business bases of petroleum complexes among programs to enhance productivity and resilience of petroleum complexes) to which Consortium for Resilient Oil Supply System (CROS) organized public invitation.

“Subsidy Program to Support Projects to Enhance Resilience of Oil Supply System” is institutionalized by the Agency of Natural Resources and Energy. The program aims to improve productivity of Japanese petroleum complexes which form the core of oil products supply system, secure business bases of those complexes which are essential for the sustainability of domestic oil supply network, and establish sustainable and stable oil products supply system in Japan.

Through this joint project, JXTG Energy and SDK will make the most of strong points of facilities in the oil refinery and the petrochemical complex in Oita complex area, and make these complexes prosper with global competitiveness.

1.Outline of the joint project

  1. 1)Project name: Project to add high-value to refined petroleum fuels
  2. 2)Project period: From 2018 to 2020
  3. 3)Site of the project: Oita complex area, Oita City, Oita Prefecture
    (Oita Refinery, JXTG Energy; Oita Complex, SDK)
  4. 4)Details of the project:
DetailsEffects
a)Increasing the number of propylene rectifying towers
  • SDK will increase recovery rate of distilled propylene through propylene rectifying towers. (SDK’s advantage)
  • JXTG will sell residual gas after recovery of propylene as product (propane). (JXTG Energy’s advantage)
b)Establishment of an ethane holder
  • JXTG Energy will receive ethane produced by SDK’s ethylene production plant and utilize it in the refinery.
  • SDK will process butane distillate, which is currently sold by JXTG Energy as fuel, through SDK’s ethylene production plant and increase production of petrochemical products.

2.Plants to take part in the project to strengthen bases of petrochemical complexes

1)Oita Refinery, JXTG Nippon Oil & Energy Corporation

Location:
1-1 Ichinosu, Oita City, Oita Prefecture
Representative:
Norihito Kataoka, General Manager, Oita Refinery
Ground area:
About 1 million m2
Start-up of operations:
April 1964
Crude oil processing capacity:
136,000 barrel/day
Major products:
Petroleum products, Petrochemical products (p-xylene)

 

2)Oita Complex, Showa Denko K.K.

Location:
2 Nakanosu, Oita City, Oita Prefecture
Representative:
Youichi Takeuchi, Oita Complex Representative
Ground area:
About 1.7 million m2
Start-up of operations:
June 1969
Ethylene production capacity:
615,000t/year (when periodic maintenance takes place)
Major products:
Petrochemical products (ethylene, propylene, etc.)

 

For further information, contact

JXTG Nippon Oil & Energy Corporation: Public Relations Dept. (Phone: 81-3-6257-7150)

Showa Denko K.K.: PR Office (Phone: 81-3-5470-3235)

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