Chiba Refinery Completed/Idemitsu Withdraws from the PAJ

In January 1963, Idemitsu's second refinery, the Chiba Refinery, was completed on a site in the Keiyo Industrial Zone.
However, even this refinery, which at the time boasted the largest size of any in the East Asian region, remained constrained by production adjustments implemented under the Petroleum Industry Law enacted in July of the previous year, so that it was permitted to produce only one-half its capacity (50,000 barrels/day).
The framework of this Petroleum Industry Law included demand and supply adjustments and the requirement for facility permits, intended to secure a stable and low-cost supply of petroleum as part of Japan's comprehensive energy policies. The result was a high level of regulation, and Idemitsu strongly opposed this system as one that was harmful to the interests of consumers and threatening to the existence of the petroleum industry.
Following enactment of this law, due to production shortages resulting from government-ordered production adjustments Idemitsu was forced to purchase products from the market at relatively higher prices. In protest at these conditions, in November 1963 it withdrew from the Petroleum Association of Japan, since the production adjustments had been implemented in the form of voluntary adjustments by the PAJ.

lay pipelines underground

At the end of 1966 oil production adjustments were discontinued ostensibly, and in October of that year Idemitsu rejoined the PAJ. However, even after that administrative guidance by the Japanese government continued, with the result that the structure of the petroleum industry was weakened.
At the same time, in 1967 the second phase of construction took place at the Chiba Refinery, expanding its secondary atmospheric distillation unit. Today, backed by the massive consumption zone of the greater Tokyo area, it serves as Idemitsu's central refinery.

The secondary atmospheric distillation unit under construction

The secondary atmospheric distillation unit under construction

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