Japan Chemical Plant Construction Industry Future Outlook - Ken Research
The construction involved in oil and gas refining or
production includes pipeline infrastructure, refineries, oil and gas derricks,
platforms and storage tanks. The construction activity also involves new
facilities, repair and maintenance, refurbishment and demolition along with
cost type of construction materials, construction equipment and construction
services.
TOYO is one of the alliance partners in Exploration &
Production (E&P) companies in Japan that offer engineering services for
development, planning, construction, operation management, project execution by
using secondary and tertiary recovery techniques. All of these are entirely
related to the exploration, extraction and production of oil and gas from the
major oil and gas fields. TOYO designs and constructs projects involving
chemical plants and oil refineries.
The world’s largest liquefied natural gas (LNG) importer is
Japan and ranks world’s fourth in coal imports, net imports of petroleum and
other fuels. Japan ranks third in consumption of crude oil and petroleum
products. The country lacks of sufficient domestic hydrocarbon resources and
has encouraged the oil and natural gas projects construction. The country is
the major exporter of energy-sector equipment and has the lowest energy intensities.
Japan is investing huge funds in research and development (R&D) of energy
technology since 1970s and has substantially increased energy efficiency.
Japan’s nuclear power generation covered about 27% of the
power generation prior to the 2011 earthquake, and was the least expensive
sources of electric power. Japan replaced the loss of nuclear power with
generation from imported natural gas, low-sulfur crude oil, fuel oil, and coal.
This replacement with expensive fossil fuels led to higher electricity prices,
higher government debt, and revenue losses for electric utilities.
According to the report, “Oil and Gas (Construction) in Japan: Market Analytics by Category &
Cost Type to 2021”,
Japan imports almost all its fossil fuels and is spending billions of dollars
for fossil fuel imports following the Fukushima accident. Japan’s currency
depreciation, soaring prices of natural gas and oil imports and sustained high
international oil prices are the major factor affecting the Japan’s oil and gas
construction sector. The government of Japan is planning to resume production
of nuclear energy with necessary safety measures. Japan believes that the use
of nuclear energy helps to reduce current energy supply and high energy prices
faced by the industries. The new energy policy issued by Japan emphasizes on
energy security, economic efficiency, emissions reduction, and safe use of
nuclear power.
Japan plans to balance the oil and gas sector by
strengthening the renewable and alternative energy sources, drifting from oil
consumption to advanced and efficient fuel generation technologies. Oil is the
largest source of primary energy in Japan but total oil consumption is negligible.
This is due to increased energy efficiency and the increased use of other green
fuels. Japan depends on imports to meet its oil consumption needs and the
government-controlled oil stocks to guard against a supply interruption. Oil
demand in Japan has primarily declined due to fuel substitution, declining and
aging population, and energy efficiency measures.
Japan has a robust oil sector comprised of various state-run,
private, and foreign companies. Japan Oil, Gas and Metals National Corporation (JOGMEC),
a state-run enterprise is responsible for Japanese companies involved in oil
and gas exploration and production overseas.
The largest companies are Inpex and Japan Petroleum
Exploration Company (Japex). Chevron, BP, Shell, and BHP Billiton are the
foreign energy companies involved in providing products and services in Japan.
The domestic oil reserves in Japan are available along the western coastline.
Most of Japan’s domestic oil production is from the country’s large petroleum
refining sector with limited resources. Chunxiao/Shirakaba and Longjing/Asunaro
are the four natural gas fields that are jointly explored and developed by
Japan and China due to the territorial claims.
Japan is investing more funds in overseas oil and natural gas
operations. Japanese companies are involved in more than 140 oil and gas
projects worldwide such as the Middle East, Southeast Asia, and Australia.
Japanese oil companies involved in exploration and production projects overseas
are Inpex, Cosmo Oil, Idemitsu Kosan Company, Japan Energy Development
Corporation, Japex, Mitsubishi, Mitsui, Nippon Oil, and others.
Japan’s natural gas production has ceased due to the
declining natural reserves in the past decade. Japan is using innovative
methods to produce hydrocarbons and to discover methane hydrates. However, the
costly innovations are sure to delay production plans. The Japanese government
implemented carbon abatement policies and pledged to lower greenhouse gas
emissions by 26% by 2030.
Japan owns the highest efficiency rate of coal-fired
technology in the world. Japan is installing new, clean coal plant
technologies, such as ultra-supercritical units or integrated gasification
combined-cycle technology, to meet environmental targets and to replace some of
the decades-old coal power plants.
Japan has three natural gas-fired power plants with a
combined 4.8 GW of capacity under construction and scheduled to start
operations by 2020. It is expected that Japan’s nuclear reactors will utilize
renewable energy resources in the coming years. By the year 2030, LNG is
expected to provide for around 27% of Japan’s power generation.
An oscillation was observed in the Japanese oil and gas
construction market in the past years. The oil and gas infrastructure exports
are a pillar to Japan's growth strategy and the oil and gas construction in
Japan has witnessed strong technology and innovation. Japan is Asia's most
advanced economy and oil demand has declined for many years due to the ageing
and declining population, and invention of cars with better mileage or cars
using alternative fuels. The use or consumption of liquefied natural gas has
started to increase in Japan and the construction of the oil and gas refineries
is increasing though at a slow pace and will surely augment the market in the
coming years.
Key Factors Considered
in the Report
Global Gas Pipeline Fabrication and Construction Market
Research Report
Japan Oil and Gas Construction Industry Analysis
Japan Oil and Gas Construction Market
Japan Chemical Plant Construction Industry Future Outlook
Japan Gas and Related Construction Upcoming Projects
Japan Oil Gas Construction Market Competitors
Japan Petroleum Products Market Size
Japan Natural Gas Market Developments
To know more about the
research report:
https://www.kenresearch.com/energy-and-utilities/oil/oil-gas-japan/116889-103.html
Related reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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