Japan's ENEOS Agrees to Buy Chevron's 50% Stake in Singapore Refining Company

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Seeking to expand beyond its domestic market, Japan's ENEOS has agreed to buy Chevron's 50% stake in Singapore Refining Company for US$2.2 billion. According to Industrial Info Resources data, ENEOS currently operates 132 plants in Japan, Australia, Southeast Asia, and Oceania.

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ENEOS' Purchase

Seeking to expand beyond its domestic market, Japan's energy leader ENEOS Corporation has agreed to buy Chevron's 50% stake in Singapore Refining Company (SRC) for US$2.2 billion.

SRC's Jurong Island Refinery, a joint venture between Chevron and Chinese oil giant PetroChina, processes 285,000 barrels per day (bpd) of crude oil. Product is fuel traded through a regional and international network, along with an established distribution in Singapore and near its location on Jurong Island. The Industrial Info Resources Global Market Intelligence (GMI) Plant Database offers a detailed plant profile.

The agreement also includes the purchase of Chevron-owned downstream assets in Malaysia, the Philippines, Australia, Vietnam and Indonesia. Industrial Info Resources is tracking 132 plants currently owned by ENEOS in Japan, Malaysia, Australia, Thailand, and elsewhere in and around Southeast Asia.

With the introduction of strict emissions limits and the government's transition away from high-carbon domestic production, Japanese refiners are looking to establish stable bases abroad. The ENEOS deal gives Japan a permanent foothold in Singapore--Asia's largest oil trading and bunkering hub--guaranteeing closer access to refined products rather than relying solely on distant, volatile regions.

Eneos Branches Out, Chevron Refocuses

There is a shrinking market for oil products in Japan--sales of oil products in the nation has dropped from just under 2.7 million barrels per day in 2021 to less than 2.3 million barrels per day in 2025--which has led the company to branch out. ENEOS Chief Executive Officer Tomohide Miyata has said this move is part of the company's plan to increase its overseas sales share to more than 50% by 2030.

On the seller's part, Chevron has said it is looking to narrow its business focus in this sale. Additionally, the company is in the process of laying off 15-20% of its global workforce, including 800 in its key Permian Basin region. It is also reorganizing into just two divisions: Upstream and Downstream, Midstream & Chemicals.

By the Numbers

• US$2.2 Billion: Price ENEOS is paying Chevron for assets including Singapore Refining Company
• 132: Number of current ENEOS plants Industrial Info Resources is tracking

Japan's Energy Security Focus

Industrial Info Resources Energy Market Strategist Geoffrey S. Lakings points out that both Japan's energy security and ENEOS's profitability are motivating factors in this move.

"Even with the government's February snap elections that moved policies further to the right, the nation has continued strict emissions limits and other moves designed to move consumers away from high carbon fuels, Japanese refiners must cast elsewhere for profitability. The Singapore purchase, along with the deal's other Southeast Asian components, gives ENEOS a foothold in key regional trading hubs in the area, including Oceania. It could also help ENEOS and the nation limit exposure to energy disruptions related to Middle East wars."

Read more about recent election changes in Japan in this February 10, 2026, article, Japan's Snap Elections Seen as Giving Prime Minister a Mandate.

And on Tuesday, South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi met in South Korea to discuss cooperation on crude and petroleum product swaps in order to further each country's energy security. This would expand their current cooperation on liquefied natural gas (LNG) swaps.

The two met behind closed doors, according to the Korea Herald, to discuss supply-chain interruptions due to the conflict in the Middle East.

"All-Hands-on-Deck" Energy Policy

Balancing climate concerns with energy independence has led to some strange bedfellows. While working on one hand to restrict emissions, the Strait of Hormuz blockades have caused Japan to struggle with supply issues for their natural gas-fired power plants, so, according to Oilprice.com, they have turned to coal as one solution.

The website quoted official Japanese data as showing, "...coal power generation rose by 11.1% in April, the biggest increase in a year, while gas power output slumped by 13%."

Nuclear is making a comeback as well. On February 9, just before the closing of the Strait of Hormuz stifled 20% of oil exports to the world, Japan restarted Unit 6 of the Kashiwazaki-Kariwa Nuclear Power Station in Niigata Prefecture, its largest nuclear plant. This was 15 years after its tsunami-related shutdown.

At that time, the U.S. Energy Information Administration (EIA) predicted the plant "could displace approximately 1.3 million tons of liquefied natural gas (LNG), or 62 billion cubic feet (Bcf) of natural gas imports annually, based on Japanese government estimates of fuel substitution."

The restart gave Japan 15 active nuclear generating reactors. In 2024, nuclear reactors generated about 9% of the nation's electricity, according to the EIA. The action now seems prescient, as about three weeks later the U.S. bombing of Iran began, closing the Strait of Hormuz's oil and LNG traffic.

Key Takeaways

• Japan's slumping consumption of crude oil products is reducing ENEOS' home market, prompting the company to expand its business footprint, as with this purchase
• Japan as a whole is looking to diversify energy sources to strengthen energy security amid market turmoil.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).