Japan resumes Iran crude loading’s; Fuji Oil, Showa Shell lift first cargo

Catogory : Market Report

Japan’s main buyers of Iranian crude have resumed loading Iranian crude more than two months after Washington granted Tokyo a 180-day sanctions waiver, marking the resumption of cargo flows to one of Asia’s leading oil importers that had come to a standstill despite the US waiver.

Fuji Oil, jointly with Showa Shell, has loaded the first Iranian crude oil cargo being lifted by Japanese refiners since the country won the waiver. The first cargo will arrive in February.

The Japanese refiners have loaded roughly equal volumes of Iranian Heavy crude — to be discharged at the respective refineries of Fuji Oil and Showa Shell, the Fuji Oil official said.

The move also marks Japan’s first loading of Iranian crude since the country received the 180-day waiver from the US on November 5.Sources showed that the cargo-laden VLCC Kisogawa left Iran’s Kharg Island Sunday bound for Kawasaki, Tokyo Bay. It is now estimated to arrive at Kawasaki on February 9.

Fuji Oil and Showa Shell are Japan’s main buyers of Iranian crude. Fuji Oil, in which Showa Shell has a 6.57% stake, operates the sole 143,000 b/d Sodegaura refinery. Showa Shell also operates the 70,000 b/d Keihin refinery in Kawasaki.

The Japanese government intends to monitor ensuing situations over Iranian crude imports as well as maintaining close discussions with the US side in order to avoid any negative impact on the stability of the country’s energy supply as well as its corporate activities.