JX Nippon Oil eyes RI downstream sector

JX Nippon Oil & Energy Corp, Japan?s biggest oil refiner, is planning to build refineries and gasoline stations in Indonesia and Vietnam as part of an expansion strategy in the Southeast Asia region amid declining fuel consumption at home, on-line reports seen on Wednesday.

JX President Tsutomu Sugimori was quoted as saying that the two countries offer huge downstream investment opportunities given huge economic growth and openness to foreign investment.

Indonesia, Southeast Asia?s largest economy, continues to rely on imported fuel products as its 1 million bpd capacity refineries could only serve about one third of domestic demand. The government has been trying hard to lure fresh investment to build new refineries.

?Indonesia has many requirements such as a need to upgrade refineries, increase refining capacity and improve ageing facilities, and we are looking for an opportunity to enter,? Sugimori said. ?We are looking to see if we can set up a complete refining and retail service station network.? (*)