Tokyo (Platts)--18Mar2011/645 am EDT/1045 GMT
Bunker fuel sales have not resumed in Tokyo Bay, despite the restart of two refineries in the area, industry sources said Friday. Four out of seven refineries in Tokyo Bay were shut and bunker sales suspended from most after a 9-magnitude earthquake hit northeast Japan on March 11. It is still unclear when bunker fuel sales will resume in the area. Kyokuto Petroleum Industries restarted its 175,000 b/d Chiba refinery Wednesday, but it is still not taking orders for bunker supply, a trader said. JX Nippon Oil and Energy expects to restart two crude distillation units at its 270,000 b/d Negishi refinery by the end of next week, but is also not taking any orders for bunker supply, trade sources said. Meanwhile, Idemitsu Kosan's 220,000 b/d Chiba has been operating normally but still has not resumed bunker sales, one of the traders said. Showa Shell seldom supplies bunker fuel from its refinery in the Tokyo Bay area while Fuji Oil usually supplies a small volume of around 10,000 mt/month. Both their refineries in Tokyo Bay have been operating normally. TonenGeneral and Cosmo Oil do not sell bunker fuel from their refineries in Tokyo Bay. Meanwhile, Itochu Enex, which operates a storage tank with a capacity of 9,500 kl (59,755 barrels) at Kawasaki, Tokyo Bay, said the terminal was operating normally but was not offering any spot cargoes. Platts had published a story Wednesday saying that Itochu Enex was selling spot cargoes, but the company Friday said it has not been selling any spot bunkers since the earthquake. "Stocks in the tank are not plentiful," a company source said. Bunker fuel supplies are likely to stay low as Japanese refiners prioritize on producing products such as gasoline and fuel oil that are required for the restoration process after the quake. Japanese bunker traders typically buy bunker fuel from local refiners on an ex-wharf basis, and sell it to shipping companies on a delivered basis. About 80% of the 350,000-400,000 mt of bunker fuel sold each month goes to term customers.--Atsuko Kawasaki, atsuko_kawasaki@platts.comSimilar stories appear in Bunkerwire. See more information at http://bit.ly/Bunkerwire