Japan-based Idemitsu Kosan Co. will reduce its crude oil refining by 14% to 7.5 million kiloliters (47 million barrels, 516,000 barrels per day) for the fourth quarter of 2008 compared to the same period in 2007, due to decreasing demand.
Idemitsu, which started reducing refinery output in August, plans a 5% cut to 5.6 million kiloliters (35 million barrels, 577,000 barrels per day) in the two months ending 30 September.
To offset falling demand in Japan, the company will begin exporting diesel to Mexico at an annual rate of 200,000 kiloliters (1.3 million barrels, 3,600 barrels per day) later this year. The firm will also consider exporting gasoline.
Idemitsu operates four refineries in Japan.