Optimization of Petroleum Product Manufacturing and Supply Network

ENEOS Corporation (President: Ota Katsuyuki; “ENEOS”) announces that it has made a decision to terminate the operation of the refinery, plant, and logistics functions at the Wakayama refinery (Refinery manager: Teshima Masayoshi) located in Arida City, Wakayama Prefecture. The termination is expected to take place in October 2023.

As one of the envisioned goals in the ENEOS Group Long-Term Vision to 2040, ENEOS aims to “Become one of the most prominent and internationally competitive energy and materials company groups in Asia”. To achieve the goal, ENEOS is striving to strengthen the competitiveness of the entire supply chain in petroleum refining and marketing as one of its base businesses, with safe operations and a stable supply of energy as the major premises.

The various circumstances in the environment surrounding the petroleum refining and marketing businesses—which include the rapid reduction in demand due to the recent spread of COVID-19 besides structural domestic demand decline for petroleum products and severe international competition mainly in Asia—were considered comprehensively. As a result, it was determined that there was a pressing need to optimize the manufacturing of refineries and plants as well as the supply network for petroleum products. ENEOS therefore decided to terminate all functions of the Wakayama refinery.

Until the termination of all functions of Wakayama Refinery in October 2023, the Refinery will continue to contribute to a stable supply of energy, putting a high priority on safe operations.

Overview of the Wakayama refinery