ENEOS Holdings, Inc. operates as an integrated energy, resources and metals company.
Segments
The company divides its operations into three segments: Energy, Oil and Natural Gas E&P, and Metals.
Energy segment
This segment, which is primarily operated through the company’s wholly-owned subsidiary, JXTG Nippon Oil & Energy (NOE), operates multiple refineries in various regions in Japan. This segment primarily consists of two lines of business, such as the refined petroleum products business a...
ENEOS Holdings, Inc. operates as an integrated energy, resources and metals company.
Segments
The company divides its operations into three segments: Energy, Oil and Natural Gas E&P, and Metals.
Energy segment
This segment, which is primarily operated through the company’s wholly-owned subsidiary, JXTG Nippon Oil & Energy (NOE), operates multiple refineries in various regions in Japan. This segment primarily consists of two lines of business, such as the refined petroleum products business and the petrochemicals business.
In the refined petroleum products business, the company engages in oil refining and processing, as well as manufacturing and sale of refined petroleum products (including supply of petroleum-related products through its service station network under the ENEOS brand). The company conducts all of its petroleum refining and processing within Japan.
The company’s refined petroleum products include gasoline (for use in automobiles), naphtha (for use in manufacturing of petrochemicals), jet fuel (for use in aircraft), kerosene (for use in heating homes), gas oil (for use in automobiles, trains and machinery, among others), heavy oil (including fuel oil A and fuel oil C, for use in heating buildings, as well as in operation of boats, heavy machinery and power plants, among others), LPG (for use in heating, air conditioning and industrial appliances, among others) and lubricant oil (for use in machinery and engines, among others).
In the petrochemicals business, the company engages in manufacturing and selling petrochemicals that range from basic chemical products, principally aromatic products but also normal paraffin—a raw material for surface-active agents—propylene—a material for making polypropylene resins—and ethylene, to specialty chemical products, primarily consisting of solvents, industrial cleaners and latent coldness storage materials. Aromatic products include paraxylene, cyclohexane, and BTX (benzene, toluene and xylene) products—which are used as basic component materials for synthetic fibers, synthetic resin, paint, plastic and other products.
The company integrates its petrochemical business with its refined petroleum products business through its Chemical Refinery Integration (CRI) initiative. The CRI initiative is a strategy to utilize the facilities of oil refineries to manufacture petrochemicals. Under the CRI initiative, the company constructs petrochemical manufacturing facilities within or in the vicinity of oil refineries.
This segment also includes the sale of liquefied natural gas (LNG), coal and other sources of energy, such as hydrogen, as well as the generation and sale of electricity primarily generated in refineries.
Oil Refineries
The company has seven oil refineries, which are spread throughout the major geographic regions of Japan—the Sendai Refinery, the Negishi Refinery, the Mizushima Refinery, the Marifu Refinery, the Oita Refinery, the Kashima Refinery, and the Osaka Refinery—of which the Kashima Refinery is operated in partnership with third parties.
The company is capable of manufacturing a range of refined petroleum products and petrochemicals in multiple locations, which enables the company to optimize its production levels and manufacturing mix of refined petroleum products and petrochemicals.
The Sendai Refinery, located in Miyagi prefecture, had capacity to process 145,000 barrels of crude oil per day as of March 31, 2017. The principal products of the Sendai Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil, and asphalt, as well as propylene, xylene, and other petrochemicals. The company uses the xylene manufactured at the Sendai Refinery to increase paraxylene manufacturing at MIZUSHIMA PARAXYLENE CO., LTD., a joint arrangement with the company and Mitsubishi Gas Chemical Company.
The Negishi Refinery, located in Kanagawa prefecture, had capacity to process 270,000 barrels of crude oil per day as of March 31, 2017. The principal products of the Negishi Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil, asphalt and lubricants. The Negishi Refinery has an integrated gasification combined cycle (IGCC) power plant capable of generating electricity, which the company sells as an independent power producer (IPP).
The Mizushima Refinery, located in Okayama prefecture, is primary in Japan with capacity to process 320,000 barrels of crude oil per day, including condensate splitter capacity, as of March 31, 2017. The principal products of the Mizushima Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil, asphalt, lubricants, petrochemicals, normal paraffin and needle coke used to produce electrodes employed in steelmaking. In 2014, the company decided to install a petroleum coke power generation equipment at the Mizushima Refinery by the year ending March 31, 2018 to reduce the cost of electricity used at the refinery and to generate electricity for sale.
The Marifu Refinery, located in Yamaguchi prefecture, had capacity to process 120,000 barrels of crude oil per day as of March 31, 2017. The principal products of the Marifu Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil, asphalt and needle coke. The Marifu Refinery also has a boiler turbine generator power plant capable of generating electricity, which the company sells as an IPP.
The Oita Refinery, located in Oita prefecture, had capacity to process 136,000 barrels of crude oil per day as of March 31, 2017. The principal products of the Oita Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil, asphalt, xylene, paraxylene, and benzene. The Oita Refinery also has a boiler turbine generator power plant capable of generating electricity for sale.
The Kashima Refinery, located in Ibaraki prefecture, is operated by Kashima Oil Co., Ltd., which is 70.7% owned by NOE. It had capacity to process 197,000 barrels of crude oil per day as of March 31, 2017. The principal products of the Kashima Refinery are gasoline, naphtha, jet fuel, kerosene, gas oil, fuel oil A, fuel or SDA oil C, LPG and paraxylene and other petrochemicals. In 2015, a newly-installed solvent de-asphalting facility and power generation facility began operating at the Kashima Refinery to reduce the cost of electricity used at the refinery. The Kashima Refinery also has a boiler turbine generator power plant capable of generating electricity for sale.
The Osaka Refinery, located in Osaka prefecture, is operated by Osaka International Refining Company, Limited, which is 51.0% owned by NOE and 49.0% owned by a subsidiary of China National Petroleum Corporation. It had capacity to process 115,000 barrels of crude oil per day as of March 31, 2017. The principal products the Osaka Refinery are LPG, naphtha, gasoline, kerosene, gas oil, heavy oil and asphalt. The majority of the products manufactured at the Osaka Refinery are exported to Asia. The Osaka Refinery also has a boiler turbine generator power plant capable of generating electricity, which the company sells as an IPP. The power plant is owned by NOE.
Petrochemical Plants
The company operates four plants in Japan, which manufacture petrochemicals, such as the Muroran Plant, located in Hokkaido prefecture; the Kawasaki Plant, located in Kanagawa prefecture; and the Chita Plant, located in the Aichi prefecture, as well as at the petrochemical manufacturing facilities at the Kashima Refinery. It has also entered into a joint arrangement with SK Global Chemical Co., Ltd. to operate a petrochemical plant in Ulsan Metropolitan City in Korea.
The Muroran Plant principally manufactures raw material for paraxylene. The Muroran plant has a boiler turbine generator power plant capable of generating electricity.
The Kawasaki Plant principally manufactures propylene, ethylene and paraxylene, among other petrochemicals; the Chita Plant principally manufactures paraxylene, benzene, and cyclohexane; and the Kashima Plant principally manufactures benzene and cyclohexane.
The Ulsan Plant is operated by Ulsan Aromatics Co., Ltd., which is 50.0% owned by NOE and 50.0% owned by SK Global Chemical Co., Ltd. It manufactures paraxylene.
The company could manufacture 3.1 million metric tons of paraxylene and 1.9 million tons of benzene per year. A majority of these products by volume were sold to overseas customers in other parts of Asia in the year ended March 31, 2017. China and other Asian countries are considered primary markets for the sale of petrochemicals.
Lubricant-Manufacturing Facilities
The company operates lubricant manufacturing facilities worldwide. In Japan, the three principal manufacturing facilities it operates are the Yokohama Plant and the Negishi Refinery, each located in Kanagawa prefecture; and the Mizushima Refinery in Okayama prefecture. Overseas, the company operates lubricant-manufacturing facilities, either through wholly-owned subsidiaries or through partnerships with other companies, in Tianjin, Yangquan and Guangzhou in China and Pusan and Ulsan in Korea, as well as in Indonesia, Singapore, Vietnam and the United States.
Gas, Coal and Electric Power
The company complements its core refined petroleum products and petrochemicals businesses with the sale of gas, coal, electric power and other diverse energy sources.
In gas operations, the company stores LNG that it procures at the terminal at the Mizushima Refinery, as well as at the terminals in Hachinohe in Aomori prefecture and Kushiro in Hokkaido prefecture, both of which commenced operations in 2015, to supply gas to gas companies and industrial customers in the area.
In coal operations, the company sold approximately 6.9 million tons of coal in the year ended March 31, 2017 extracted from Australia’s Bulga coal mine. The coal is sold primarily to power and steel companies in Japan.
The company also engages in the wholesale and retail sale of electricity to power companies. In electric power operations, the company has the capacity to supply wholesale approximately 828,000 kilowatts of electricity as an IPP, and has the capacity to supply in retail approximately 837,000 kilowatts of electricity as a power producer and supplier. It also commenced retail supply of electricity in April 2016 in connection with the liberalization of the retail electric power market.
Transportation
The company operates a fleet of approximately 27 oil tankers, 23 of which have approximately 300,000 tons of deadweight each and are used principally for transporting oil from oil-producing countries to Japan, and the remaining 4 of which have approximately 100,000 tons of deadweight each and are principally used for the purpose of transporting oil within Japan. The company owns three of the smaller oil tankers and two of the major oil tankers. The four smaller oil tankers used principally in Japan are occasionally used to transport oil to Japan from oil producing countries when they are not transporting oil in Japan. The company also lends and borrows oil tankers to and from other companies.
Sales and Distribution
The company supplies its principal refined petroleum products to customers, such as gasoline, gas oil and kerosene to distributors in its network of service stations; naphtha to chemical companies; jet fuel to airlines; fuel oil A to manufacturing companies; and fuel oil C to manufacturing companies and electricity companies.
As of March 31, 2017, the network consisted of 10,298 service stations, of which 2,837 were self-service stations, with a national footprint that encompassed all major geographic regions of Japan. The company owned 2,312, or 22.5%, of the service stations in the network and independent owners operated the remaining service stations. The company supplies refined petroleum products to independent owners through contracts under which the company supplies required quantities of refined petroleum products and the owners are required to purchase such products from the company.
The company distributes refined petroleum products from oil terminals to service stations using ships, tank lorry trucks and railroads. The company also conducts barter transactions with other Japanese oil refiners, in particular with Idemitsu Kosan Co., Ltd. and Cosmo Oil Co., Ltd.
Oil and Natural Gas E&P segment
This segment operates the company’s business primarily through its wholly-owned subsidiary, JX Nippon Oil & Gas Exploration Corporation (NOEX). The company primarily engages in the exploration, development and production of oil and gas through 32 subsidiaries and 7 associates and joint ventures, focusing on 4 principal geographic areas, such as Southeast Asia, Oceania, the U.K. North Sea, and the United States.
This segment consists of searching for underground or underwater oil and gas fields, drilling exploratory wells with rigs, and subsequently operating wells to recover oil or gas. The company engages in such activities both as the operator and through alliances with third-party operators.
Exploration, Development and Production
Exploration
The company views that its oil and gas exploration leads to development and production and its success in exploration offers potential growth in the medium to long term.
Appraisal and Development
As of March 31, 2017, the company conducted oil and gas appraisal activities and development operations at six fields in five countries, including the Third Train of the Tangguh LNG Project in Indonesia, the Mariner oil field in the U.K. North Sea and Hail oil field in United Arab Emirates.
Production
As of March 31, 2017, the company conducted oil and gas production operations in 12 countries, including Vietnam, Malaysia, the United Kingdom and the United States.
Southeast Asia
The company conducts exploration and production operations in Malaysia, Indonesia, Vietnam and Myanmar.
Malaysia: JX Nippon Oil & Gas Exploration (Malaysia), Ltd., a subsidiary of NOEX, engages in the exploration, development and production of gas, condensate from Block SK10 (Helang Field and Layang Field), where it holds a 75.0% interest and acts as operator. JX Nippon Oil & Gas Exploration (Sarawak), Ltd., NOEX’s subsidiary, also holds a 37.5% interest in Block SK8 (Jintan Field, Cili Padi Field and other nearby fields). The gas produced from Blocks SK10 and SK8 is transported through subsea pipeline to a liquefaction plant in Bintulu, Sarawak, owned by Malaysia LNG Tiga Sdn. Bhd., where it is converted into LNG. JX Nippon Oil & Energy has a 10.0% equity interest in Malaysia LNG Tiga Sdn. Bhd. The LNG is exported to various countries, including Japan. Exploration activity is ongoing in Deepwater Block R Offshore Sabah, which was acquired in 2012, and in which NOEX holds a 27.5% interest.
Indonesia: Nippon Oil Exploration (Berau), Limited, a company owned 51.0% by NOEX; and KG Berau Petroleum Ltd., a company owned 14.2% by NOEX, collectively hold a 13.4% interest in the Tangguh project, which consists of the Berau Block, Wiriagar Block and Muturi Block.
Vietnam: Japan Vietnam Petroleum Co., Ltd., a subsidiary of NOEX, holds an interest in, and operates, Block 15-2. The Rang Dong oil field and the Phuong Dong oil field feature an unconventional fractured granite basement rock reservoir in addition to clastic reservoirs. NOEX has been improving the productivity of the fields by applying advanced technologies, including fracture evaluation technology, horizontal borehole drilling technology and hydrocarbon gas enhanced oil recovery for clastic reservoirs.
Oceania: The company conducts production activities in Australia and Papua New Guinea.
Papua New Guinea: The company holds interests in Merlin Petroleum Company (Merlin) through Nippon Oil Exploration (PNG) Pty. Ltd., a wholly-owned subsidiary of NOEX, and through Japan Papua New Guinea Petroleum Company, Limited, in which NOEX holds a 98.4% equity interest. Through Merlin, the company holds interests ranging from 8.3% to 73.5% in exploration, development and production projects in the Kutubu, Moran and other onshore oil fields in Papua New Guinea. Through Southern Highlands Petroleum Co., Ltd., a subsidiary of NOEX, the company also holds an 18.8% interest in the SE Gobe project, which is to be sold in 2017.
Merlin also participates in the PNG LNG project in which it holds a 4.7% interest with production nameplate capacity of 6.9 million metric tons of LNG per annum. The project commercializes natural gas from onshore gas fields, as well as associated gas from crude oil fields. The gas is transported through a 700 kilometer pipeline to an area near Port Moresby where LNG liquefaction facilities are located. Four long-term sale and purchase agreements have been entered into with electric and gas utilities in Japan and other buyers in China and Taiwan for the sale of LNG from the PNG LNG project.
Exploration activities are ongoing in PPL 219 and PPL260. NOEX indirectly holds 28.8% interest in PPL 219 and 20.0% interest in PPL 260.
The U.K. North Sea
JX Nippon Exploration and Production (U.K.) Limited, a wholly-owned subsidiary of NOEX, holds interests in 12 fields in the U.K. North Sea producing oil and gas, including a 4.0% to 6.3% interests in the Brae fields; a 27.4% interest in the Andrew field; a 22.9% interest in the Kinnoull field; a 14.0% interest in the Blane field; a 5.0% interest in the Mungo and Monan fields; a 13.3% interest and 12.1% interest in the Mirren and Madoes fields, respectively; and a 4.1% interest in the Merganser field. Each of the Mungo and Monan fields and the Mirren and Madoes fields are expected to be sold in 2017 pursuant to agreements that have been signed.
The United States
In the United States, JX Nippon Oil Exploration (U.S.A.) Limited, a wholly-owned indirect subsidiary of the company, holds interests in oil and gas fields ranging from the continental shelf (approximately 200 meters in depth) to deep water area (approximately 200 meters in depth) and onshore area, including a 35.0% interest in Main Pass 140, a 11.6% interest in K2 in the Gulf of Mexico and a 50.0% interest in the Orchard North field in onshore Texas.
Canada
Mocal Energy Limited, a wholly-owned indirect subsidiary of the company, holds a 5% interest in Syncrude Canada Ltd. (Syncrude). Syncrude operates the Syncrude Project, which is the production of synthetic crude oil from the mining and processing of oil sands, located on leases within the Athabasca Oil Sands Region in the province of Alberta, Canada. Syncrude extracts bitumen, which is asphalt-like oil, from oil sands taken from open-pit mines. The bitumen is then processed into synthetic crude oil, by cracking and sweetening using upgrading facilities. The synthetic crude oil is delivered to customers through pipelines, being used as a feedstock for refineries and processed into petroleum products, such as gasoline, diesel oil and jet fuel.
Metals segment
This segment operates the company’s business through its wholly-owned subsidiary, JX NIPPON MINING & METALS CORPORATION. This segment includes a range of businesses related to nonferrous metals, primarily copper, as well as copper resource development, copper smelting and refining, electronic materials and recycling and environmental services businesses.
In the copper resource development business, the company seeks to secure a supply of ore, as well as investment returns, through investments in promising mine development projects. The company has investments in four copper-producing mines in Chile.
The company’s copper smelting and refining activities are operated by Pan Pacific Copper Co., Ltd. (PPC), a consolidated subsidiary formed in partnership with MITSUI MINING & SMELTING CO., LTD (MITSUI MINING & SMELTING). The subsidiary is responsible for the company’s copper smelting and refining operations, with three production bases in Japan.
In the electronic materials business, the company manufactures electronic materials products using various technology and in the recycling and environmental services business, copper and precious and rare metals are recovered from recycled materials and industrial waste.
Copper Resource Development
In the copper resource development business in the Metals segment, the company focuses on obtaining needed raw materials for its smelting and refining business.
The company has investments in four copper-producing mines in Chile, such as the Caserones, Los Pelambres, Escondida and Collahuasi mines.
The company owns a 51.5% interest in the Caserones mine through subsidiaries. The company owns a 15.0% interest in the Los Pelambres mine through a subsidiary. The company owns a 3.0% interest in the Escondida mine through associates.
The company owns a 3.6% interest in the Collahuasi mine through an associate. Copper produced at the Caserones, Los Pelambres, Escondida and Collahuasi mines are sold to smelters and refiners, including the company’s subsidiary, PPC. The investments in the Caserones, Los Pelambres, Escondida and Collahuasi mines are made primarily to secure access to copper concentrate and other raw materials needed for the company’s copper smelting and refining business, as well as to generate a return from the mining activities. The company engages in the operation of the Caserones copper mine by providing technical and personnel support, but it does not participate in the development and operation of copper mines and related facilities at the Los Pelambres, Escondida and Collahuasi mines other than as an investor and a purchaser of production.
Copper Smelting and Refining
After obtaining copper concentrate and other raw materials, the company smelts and refines them to produce refined copper. The company’s copper smelting and refining activities are operated by PPC, a subsidiary of which 32.2% of the equity is owned by MITSUI MINING & SMELTING. The company has three production bases for smelting and refining in Japan that produced approximately 562,000 metric tons of refined copper in the year ended March 31, 2017.
The company conducts copper smelting and refining operations within Japan at the Saganoseki Smelter & Refinery in Oita prefecture, the Hitachi Works in Ibaraki prefecture, and the Tamano Smelter in Okayama prefecture. The company also conducts copper smelting and refining operations in Korea through its associates and joint venture, LS-Nikko Copper Inc. (LS-Nikko Copper). As of March 31, 2017, the company had a copper cathode production capacity of approximately 650,000 metric tons, excluding LS-Nikko Copper.
The Saganoseki Smelter & Refinery produces refined copper, ingot copper, precious metals, sulfuric acid and nickel sulfate, among other materials. The Hitachi Works, which does not have independent smelting facilities, produces refined copper in conjunction with the Saganoseki Smelter & Refinery. The Saganoseki Smelter & Refinery and the Hitachi Works jointly had an annual refined copper production capacity of approximately 450,000 metric tons as of March 31, 2017.
The Tamano Smelter, which produces refined copper, sulfuric acid and nickel sulfate, among other materials, had an annual capacity for refined copper production of approximately 290,000 metric tons as of March 31, 2017, and the company is entitled to a pro rata share of approximately 200,000 metric tons due to its capital participation through ha subsidiary.
The Tamano Smelter, the Saganoseki Smelter & Refinery and the Hitachi Works use the waxless permanent cathode method to supply refined copper. The company distributes the metals produced in the Saganoseki Smelter & Refinery and in the Hitachi Works, as well as some of the Tamano Smelter production, pursuant to term contracts, effective for the calendar year.
The Onsan Smelter & Refinery, located in Korea and operated by LS-Nikko Copper, had an annual copper smelting capacity of approximately 270,000 metric tons as of March 31, 2017. The Onsan Smelter & Refinery produces refined copper, precious metals and sulfuric acid, among other materials. These products are sold primarily in Korea through distribution channels independent from those of the two Japanese facilities.
Electronic Materials
The company’s primary electronic materials products are copper foil, thin-film forming materials, compound semiconductor materials, precision rolled materials and precision fabricated materials.
Copper foil is incorporated in the printed circuit boards of computers, mobile phones and other electronic devices. The company manufactures two categories of copper foil, such as electro-deposited copper foil and treated rolled copper foil. Electro-deposited copper foil is used for rigid printed circuit boards, while treated rolled copper foil is used for flexible printed circuit boards. Printed circuit boards are incorporated into various electronic devices, including mobile phones, hard disk drives, optical pickups and flat panel displays.
The company manufactures sputtering targets, which are thin-film forming materials used in semiconductors, flat panel displays, solar cells, storage components and other electronic components. The company manufactures high-purity copper sputtering targets for semiconductors, as well as for indium tin oxide targets used to form transparent conductive film of flat-panel displays. The company also manufactures magnetic sputtering targets for magnetic recording media, such as hard disks, as well as sputtering targets for DVDs, blu ray disks and other phase change optical discs.
The company also manufactures compound semiconductor materials, which are semiconductors composed of two or more elements. Compound semiconductors feature superior optical and electrical characteristics as compared to single element semiconductors, and thus are useful for various special-function devices.
In metal manufacturing operations, the company manufactures rolled copper products and other precision rolled materials. Precision rolling operations are carried out principally at the Kurami Works in Kanagawa prefecture, as well as by JX Nippon Mining & Metals (Suzhou) Co., Ltd. in China to meet demand in Asia. The company’s products are used as wiring materials for connectors, lead frames and flexible printed circuits in IT equipment, such as computers and mobile phones and household electronics. The company’s precision rolled products offer strength and high electro-conductivity, as well as high thermal resistance, bend formability and bending resistance properties.
Metal manufacturing operations also include the manufacture of precision fabricated products. In the precision fabricating business, the company’s integrated system for manufacturing gold-plated materials covers not only rolling, plating and pressing but also designing and producing molds. The gold-plated materials are used in IT applications and connectors in automobiles. The company’s precision fabrication operations are carried out primarily by a wholly-owned subsidiary, JX Metals Precision Technology Co., Ltd., as well as by Nippon Mining & Metals (Suzhou) Co., Ltd. in China to meet demand in Asia.
The company also engages in manufacturing titanium products through Toho Titanium Co., Ltd. (Toho Titanium), of which it owns 50.4%. Toho Titanium is an integrated titanium manufacturer with a product lineup that includes titanium metals, catalysts, electronic materials and chemicals. In February 2016, Toho Titanium established a joint venture company in Saudi Arabia for manufacturing and distributing titanium sponge in Saudi Arabia, with commercial production scheduled to start by the end of the year ending March 31, 2018.
Recycling and Environmental Services
The company’s recycling and environmental services business consists primarily of the recycling business, in which copper and precious and rare metals are recovered from recycled materials, and the environmental business, in which industrial waste materials are detoxified and rare metals are recovered from them. Some of the metals recovered are used as raw materials in the company’s electronic materials business.
Within Japan, the company has four waste treatment facilities in Hokkaido, Ibaraki, Toyama and Fukui prefectures for its environmental business and other business. The company also operates the Hitachi Metal Recycling Complex (HMC) in Ibaraki prefecture with hydrometallurgical process equipment and a copper recovery furnace. HMC processes recycled raw materials, primarily generated in the Tokyo metropolitan area, to recover metals, including gold, silver, platinum and palladium. In addition, low-grade recycled materials previously processed by the Saganoseki Smelter & Refinery and intermediate products generated during smelting processes are used as inputs for recycling at HMC. HMC recovers the metals through a process that combines hydro- and pyro-metallurgical processes.
Overseas, the company has a facility in Taiwan for collection and pre-treatment of copper and precious metal-bearing scraps. The collected scraps are treated at the Saganoseki Smelter & Refinery and HMC.
Other Business Activities
The company’s other business activities include construction, such as road paving, civil engineering, development and construction of apartment buildings and office buildings, as well as manufacturing and sales of asphalt mixture, operated through its subsidiary, NIPPO CORPORATION, of which it holds an equity ownership of 57.0%; electric wire and cable manufacture, operated through Tatsuta Electric Wire and Cable Co., Ltd., of which it holds an equity ownership of 37.0%; land transport, operated through Maruwn Corp., of which it holds an equity ownership of 38.2%; sale and leasing of real estate owned by the company; and administrative and accounting services provided to group companies.
Strategy
Energy: This segment’s business strategy includes improving and realizing at an early date integration synergies, and strengthening international competitiveness through thorough streamlining of core businesses; developing and strengthening businesses that would be mainstays of the future; reinforcing business management by improving business infrastructure; and establishing efficient administrative division structure.
Oil and Natural Gas E&P: This segment’s business strategy is to ensure thorough selection and concentration, and establish a strong structure that could endure a lower oil price.
Metals: This segment’s business strategy includes developing and strengthening businesses that would be mainstays of the future. The company strives to strengthen profitability of the Caserones Copper Mine in Chile and expand the size of the electronic materials business.
Research and Development
For the year ended March 31, 2017, the company’s expenditures for research and development were ¥21 billion.
Government Regulations
The company’s business activities in Japan are subject to primary regulations, including Gas Business Act; Electricity Business Act; Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture; Act Concerning the Maintenance of Quality of Gasoline; Fire Service Act; High Pressure Gas Safety Act; Act on the Prevention of Disaster in Petroleum Industrial Complexes and Other Petroleum Facilities; Industrial Safety and Health Act; Construction Business Act; Act on the Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas; Mining Act; Mining Safety Act; and Marine Transportation Act. The company is subject to a range of powers of the Ministry of Economy, Trade and Industry of Japan, including the power to inspect and to require the submission of reports and information.
In addition to the laws and regulations, there is a range of permissions and registrations necessary for the company to conduct its business, such as registration with the Ministry of Health, Labour and Welfare; and the relevant local governments as a manufacturer, importer and distributor of poisonous and deleterious substances under the Poisonous and Deleterious Substances Control Law, and permission from the Minister of the Ministry of Land, Infrastructure, Transport and Tourism to install an air navigation facility as specified by cabinet order under the Civil Aeronautics Act of Japan.
Major environment-related regulations to which the company’s business activities are subject include Law Prohibiting Air Pollution; Soil Contamination Countermeasures Act; Law Prohibiting Water Pollution; Law Regarding Emissions Management and Improvement of Designated Petrochemicals Law; Law Regarding Cleanup and Disposal of Waste Materials; Comprehensive Environmental Response, Compensation, and Liability Act; and Law Regarding Prevention of Marine Pollution and Maritime Disaster.
History
The company was formerly known as JXTG Holdings, Inc. and changed its name to ENEOS Holdings, Inc. in June 2020. It was founded in 1888.
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