Sunday, April 3, 2011

ExxonMobil Fuel Supply up 140 Percent into Area Devastated by Earthquake

ExxonMobil website, news releases, Tokyo, Business Wire, Mar 28, 2011
In an ongoing effort to quickly and safely supply much needed fuel to the areas in Japan hardest hit by the earthquake, ExxonMobil Group Japan has increased fuel supply into its Tohoku region dealer service station network by 140 percent above pre-earthquake levels.

Since the March 11 earthquake and tsunami, ExxonMobil has moved more than 24 million liters of fuel, including gasoline, diesel, and kerosene, into the Tohoku region in northeast Japan, enough to fill 1,200 tank trucks.

“We are acutely aware of the suffering and anxiety of the many people affected by the earthquake,” said Philippe Ducom, president of ExxonMobil Group Japan. “The top priority of our 2,900 employees in Japan is to work together to continue to build a stable supply chain and help restore operations at our dealer services stations so that people in the most affected areas can get much-needed fuel.”

“The rapid and safe restoration of our Esso, Mobil, and General service station network is a result of the tremendous effort of our supply business partners, fuels marketing local representatives, and service station dealers in Tohoku,” added Ducom. “It is through their strong commitment and dedication that more than 60 percent of our dealer sites are back in operation and more are being added every day [compared with just 31 percent on Mar 19 -- D.R.]. Yet there is still much work ahead to get fuel to people in Tohoku.”

ExxonMobil dealers have a network of 360 Esso, Mobil, and General service stations in the Tohoku region. [...]

All [four] of ExxonMobil’s refineries in Japan [i.e., TonenGeneral Sekiyu’s 335,000 b/d Kawasaki, 156,000 b/d Sakai, 170,000 b/d Wakayama and Kyokuto Petroleum Industries/KPI’s 175,000 b/d Chiba -- D.R.] are running at higher than normal rates, continuing increased supply to stock devastated areas. In addition, the reopening of ExxonMobil’s Shiogama Terminal in Sendai continues to boost fuel supplies into the Tohoku region. [Read more]

(ExxonMobil is the world's largest refiner---please see my post "World's Top 25 Largest Refining Companies, Jan 1, 2011 -- OGJ," here. According to Oil & Gas Journal via the EIA's Japan Country Analysis Brief, Mar 2011, Japan had 4.7 million bbl/d of oil refining capacity as of January 2011, and has the second-largest refining capacity in the Asia-Pacific region after China. According to Wood Mackenzie, Japan is the second largest refining base in the Asia-Pacific region (after China) with crude distillation capacity of 4.4 million bbl/d. The devastating 9-magnitude earthquake which struck Japan's northeast March 11 had in its immediate aftermath shut almost 1.4 million bbl/d or some 30% of refining capacity because of either physical damage, loss of power or as a safety precaution. All or parts of the refinery units were shut down after the earthquake at Exxon's Kawasaki refinery and the Chiba refinery. Exxon's other two refineries---the Wakayama refinery and the Sakai refinery---were not affected by the disaster in Japan. Also, the Kawasaki refinery cogeneration unit is now maximizing electrical generation to provide power to the electricity grid, which is under supplied following the tragedy. About 33 megawatts of power is currently---as of Mar 23---being transmitted to the grid, which is enough electricity for about 10,000 Japanese households. ExxonMobil typically sends 10-15 megawatts/month of surplus power from an in-house power generator at the Kawasaki refinery to Tokyo Electric Power Co./Tepco prior to the earthquake. Kyokuto Petroleum Industries Ltd., i.e. KPI, is a 50-50 joint venture of Exxon Mobil and Mitsui Oil Co. Also, ExxonMobil holds a 50.02 percent stake in TonenGeneral Sekiyu. For information on Japan's nuclear crisis and its impact, please see my posts under the category/label "Japan." -- D.R.)

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