Market Research Reports - Ken Research Japan Oil and Gas Construction Industry Analysis

Japanese Oil & Gas Construction Projects to Steadily Grow: 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.