February 9, 2011 [Bloomberg] - Saudi Aramco, the world’s largest oil exporter, expects this quarter to deliver the first cargoes of crude to storage tanks it leases from Japan Oil, Gas and Metals National Corp. on the island of Okinawa.
The state-owned oil producer of Saudi Arabia agreed to lease capacity to store 3.8 million barrels on Okinawa, Aramco said in a statement on its website today. Jogmec, Japan’s state- owned explorer, reported the signing in December.
The agreement is the second for storage that Aramco reached with Japan last year as the company seeks greater access to Asia, its largest export market. Aramco had already agreed in June with Japan’s Agency for Natural Resources and Energy to store another 3.8 million barrels of oil, or 600,000 kiloliters, also on Okinawa.
The additional storage capacity gives Aramco a bigger cushion against disruptions to supply through the Strait of Hormuz at the mouth of the Persian Gulf. Japan has made similar agreements for storing crude with Abu Dhabi National Oil Co. and Petroleo Brasileiro SA as declining Japanese fuel demand frees up storage space.
