- Oil accounted for 46% of Japan’s total primary energy supply in 2012.
- In 2012, 4.8 million bpd of oil was imported.
- Approximately 83% of Japan’s crude oil imports came from the Middle East in 2012.
- Japan has 27 operational refineries with a total crude distillation capacity of approximately 4.5 million bpd.
- The 90 day stockholding obligation is met by holding government emergency stocks and placing a minimum stock obligation on industry.
- At the end of April 2013, Japan held 596 million bbls of oil stocks.
- Natural gas supply sources to the country are well diversified.
- Japan imports gas through 31 LNG terminals with approximately 10 billion m3 of storage capacity.
- Japan produced 17 000 bpd of crude oil in 2012, equivalent to 0.3% of consumption.
- Demand for oil products decreased from 2003 – 2012.
- Refining and distribution of oil products are fully privatised and open to foreign capital companies.
- At the end of March 2012, storage capacity in Japan was estimated at over 900 million bbls.
- The Petroleum Refining and Reserve Division of the Natural Resources and Fuel Department acts as a secretariat and forms the core of the Japanese National Emergency Strategy Organisation (NESO) during oil supply disruptions, in cooperation with other relevant parties.
- The government has implemented changes for improvements following the regional shortages of oil products caused by the 2011 earthquake.
- Japan has a bilateral agreement with New Zealand that allows it to hold stocks on New Zealand’s behalf.
- Public crude oil stocks are widely dispersed at 10 bases and 16 private terminals.
- In the case of failure to comply with compulsory stockholding obligations, companies can be sentenced to up to one year in prison or fines up to US$ 32 000.
- Demand restraint is considered as a secondary emergency response measure.
- Short term fuel switching from oil to other fuels is not regarded as an emergency response measure.
- In 2012, domestic production of natural gas was 3.3 billion m3.
- Natural gas production was equivalent to 3% of domestic demand.
- Japan’s demand for natural gas has steadily increased since 1980.
- In order to compensate for nuclear outages, natural gas use in power generation increased from 27% in 2010 to 41% in 2012.
- Australia was the biggest supplier of natural gas to Japan in 2012.
- Japan has 31 operating receiving LNG terminals with storage capacity of over 16 million m3.
- Storage capacity meets close to 30 days of domestic natural gas consumption.
- No legal obligations for industry to hold emergency stocks in the form of natural gas, LNG or alternative fuels are in place.
Adapted by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/17072014/oil_gas_seucrity_supply_japan/