Oil report

JXTG says to shut Osaka International refinery venture with PetroChina

TOKYO, July 23 (Reuters) - JXTG Holdings, Japan’s biggest oil refiner, said on Tuesday it plans to shut down its Osaka International refining venture with PetroChina after buying out the stake owned by its Chinese partner.

The closure of the 115,000 barrel-per-day refinery is scheduled for October next year after its venture with PetroChina expires a month earlier, JXTG said in a statement.

JXTG holds 51% of the venture while PetroChina has the rest. The refinery will be converted into an asphalt-fuelled electric power plant. No details were given on costs involved, although JXTG said the changes would not impact its earnings in the current financial year.

In the meantime, JXTG is in discussions with PetroChina on having the Chinese company as a partner in its 129,000 bpd Chiba refinery near Tokyo.

JXTG is focussing on growth areas such as chemical products, power generation and electronic materials under a long-term vision through 2040 as it expects Japanese oil demand will halve by that year. (Reporting by Aaron Sheldrick; Editing by Subhranshu Sahu)