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Japanese Idemitsu sees no supply disruption from Iranian oil sanctions

Gasoil News - Published on Thu, 16 May 2019

Image Source: The Japan Times
Reuters reported that Japan's No.2 oil refiner Idemitsu Kosan Co is not expecting any supply disruption as it is getting alternative supplies from the Middle East and others to replace sanctions-hit Iranian oil. Mr Noriaki Sakai, Idemitsu's general manager of finance department, told a news conference "We don't have any problem with securing alternative supplies since Iranian oil accounted for less than 10 percent of our total supply. We have not picked any particular countries to buy alternative supplies for Iranian oil, but we have a wide range of sources and we are selecting where and when to buy alternative crude depending on prices and seasonal demand," citing that Saudi Arabia, UAE and Kuwait are among the top list of oil producers that have extra output capacity.

Japanese refiners are tapping more oil from the Middle East after the United States ended all waivers from sanctions on Iran starting from this month.

Mr Sakai said that Idemitsu, which owns stakes in coal mines and trades the fuel, aims to raise the ratio of non-fossil-fuel business in the long run, but plans to continue supplying coal to Japan and Southeast countries where there is demand while improving fuel efficiency to reduce CO2 emissions.

He said that "Still, given global pressure against coal, how we deal with our coal business is one of the big issues to be considered by our new board members."

Source :

Posted By : Rabi Wangkhem on Thu, 16 May 2019
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