Japan’s Idemitsu and Mitsui mulled over consolidating ethylene crackers in Chiba
If the feasibility study proves the plan is workable, the consolidation may take place during the fiscal year 2027.
Amid the rising competition from the mushrooming large-scale crackers across the region, Japanese petrochemical companies: Idemitsu Kosan and Mitsui Chemicals decided to study the possibility of consolidating the jointly operated steam cracker in Ichihara, Chiba, Japan.
If the feasibility study proves the plan is workable, the consolidation may take place during the fiscal year 2027.
The discussed steam cracker is located at the same location as Idemitsu Kosan’s 190,000 barrels/day refinery in Chiba, which produces 414,000 tons/year of ethylene and 224,000 tons/year of propylene. The cracker is a 50-50 joint venture with Mitsui Chemicals.
Shunichi Kito, Idemitsu Kosan’s president and chief executive officer (CEO) said in a statement, “For a feedstock in the consolidated ethylene facility, we will consider shifting away from conventional fossil-derived naphtha to bio-naphtha generated as a byproduct of our sustainable aviation fuel (SAF) business, as well as naphtha derived from chemical recycling of used plastic at a facility scheduled to begin operation in [fiscal-year] 2025”
In the meantime, the two companies will continue to jointly operate the steam cracker at Mitsui Chemicals’ plant in Ichihara, Chiba, which produced 612,000 tons/year of ethylene and 350,000 tons/year of propylene.
No further details on the feasibility study are disclosed at the time of this report.