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Eneos hunts for oil with one eye

on the future

INVESTMENT WITH the weather across the Japanese archipel- and acquisitions. But we want to become Asia’s
ago having already turned noticeably cooler, the number one energy company . . . so we will push
The company is valued nation’s largest oil refiner, Eneos, is on the hunt ahead as long as we have financial strength.”
at $10.6bn. for oil. At the same time, he went on to reference the
Speaking to the Financial Times (FT) in Lon- commonly held belief in Japanese business and
don, Eneos president Takeshi Saito recently said: political circles for Tokyo to be a market leader
“Europe had said no to coal but now Germany is should the time one day come when Eneos
burning it, so they’re basically being opportunis- moves away from oil sales altogether, adding:
tic,” adding: “We believe there will be no change “I’m concerned if Japan has that technology
in the decarbonisation shift, but it’s a matter of edge.”
whether a realistic approach will be taken or a In an interview earlier this year with Japa-
dramatic transition is made. As things stand nese media the Eneos president revealed that the
now, Europe is starting to think that it may be firm is planning to counter a decline in domes-
problematic to push ahead too rapidly.” tic demand for oil by consolidating production,
Spotlighting Germany’s about-turn on coal most notably in the short term by closing one of
use as Berlin looks to guarantee domestic energy the company’s 10 refineries in 2023.
security in the short term, temporarily laying A statement by the company in the summer
aside long-term net-zero goals, Saito also made had previously said that demand for oil across
mention of his firm’s efforts at meshing deals in Japan was anticipated to plummet by 50% by
green energy as Japan’s reliance on fossil fuels is 2040.
reduced. Reports to this end indicate the company has
Across Japan, Eneos, already a leading refiner plans to get rid of its UK-based oil links.
on the world stage valued at over $10.6bn, has As a result, president Saito has increasingly
been walking a tightrope between its regular started to focus on progress made by other areas
oil and other fossil fuel sales dating back to the of the world working towards the installation of
late 19th century, and attempts to move towards renewable infrastructure, in what some see as a
greener sources of energy. push for Eneos not to be left behind.
Saito’s own appointment as Eneos president Efforts by Eneos in recent months across the
in April was seen by many in Tokyo as indicative renewables sector have materialised primarily in
of the long term intent of the company to this the solar and hydrogen energy fields.
end. Moves towards adding wind power capacity
At the time Saito himself called for “the sec- to its portfolio, meanwhile, have proved less pos-
ond founding of the company.” itive following the acquisition for $2.8bn of Japan
This second founding was a point he was seen Renewable Energy (JRE), a renewables start-up
to hint at in his FT interview, referring to 30-year with annual sales of $146mn.
record lows in yen-dollar exchange rates and the Eneos has already seen a pushback by local
global weakening of Japan’s currency. “With the protest groups campaigning against turbine
weaker yen, we need to pay 50 percent more installation lead to a significant write-down of
than usual, so it’s not an environment for merger $20mn on business forecasts. ™

Week 42 24•October•2022 www. NEWSBASE .com P9