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TonenGeneral mulls investment in secondary unit

ExxonMobil Japan group refiner TonenGeneral Sekiyu KK is considering investing in secondary refining units or cutting its refining capacity to meet government efficiency rules. The Ministry of Economy, Trade and Industry (METI) wants to strengthen Japan’s refining industry at a time of higher demand for lighter oil products cracked from mostly heavier crude by boosting the ratio of residue cracking units to crude distillation units (CDUs) to13%, from 10%. TonenGeneral has 836,000 barrels per day of total crude refining capacity, with a residue cracking ratio of less than 10%. Thus, it will have to improve its residue cracking ratio by 45 % to meet METIs directive by the end of March 2014. “We are undertaking a very deep and very rigorous review of all of our options,” said Managing Director W.J. Bogaty. (August 13, 2010)