Creating partnerships for sustainable growth in our local energy sector
In June 2022, Aramco signed an agreement with ENEOS Corporation (ENEOS) for oil storage at ENEOS’ Kiire terminal located in Kagoshima, the south-western part of Japan, as the two energy companies strive to enhance cooperation.
The first crude oil shipment was carried out in June by Bahri’s very large crude carrier Saham.
ENEOS, the largest refiner in Japan, accounts for more than 50% of the country’s total refining capacity. Its Kiire terminal is the largest crude oil storage facility with a total capacity of over 46 million barrels.
The deal allows in-tank-transfer (ITT) sales, which maximize Aramco’s placement and sales realization, even in smaller increments.
Expanding on Okinawa’s concept
Being much closer to the Japanese refineries than Okinawa, the Kiire terminal can accommodate a wide range of vessel types, from medium range tankers to ultra large crude carrier, with 24-hour loading capability. This presents great flexibility and risk management opportunity for Japanese and Far Eastern refiners’ interest in short haul free-on-board sales.
Aramco already has 13 tanks with a total capacity of 8 million barrels in Okinawa, leased by the Japanese government. Kiire expands this capacity by an additional 3 million barrels of storage. As Japan is a major market for Aramco, it will ensure demand sustainability through the expansion.
Aramco has been maintaining the largest share in the Japanese market since 2001, and it strives to keep it by deepening ties further with its business counterparts.