The world responded to 11 March’s massive quake and subsequent tsunami that washed over Japan’s shores with a sense of shock and disbelief, and many are keeping a watchful eye on the country’s nuclear plants, which threaten to come apart in the wake of the natural catastrophe. But the destruction has also affected numerous Japanese petrochemical facilities.

As more and more news about the extent of the damage trickles in, it is becoming increasingly clear that the Ichihara refinery complex, located in Tokyo Bay near the city of Chiba, bore the brunt of the quake and the subsequent tsunami wave. The site is home to crackers and polymerisation lines operated by Denka, Idemitsu, Maruzen, Mitsui and Sumitomo, among others. Reports indicate that the fire that engulfed Ichihara shortly after the tsunami receded – see Plasteurope.com of 11.03.2011 – continues to burn. The area is likely to see widespread devastation, with most petrochemical plants out of action for the foreseeable future.

Looking at the eastern shores of Japan’s Chiba province, it is highly likely that the petrochemical facilities located in Kashima also have been impaired by the effects of the huge tsunami tidal wave. Mitsubishi, which operates numerous facilities in Kashima, has said it is no longer operating any of its plants at the site.

ExxonMobil, by contrast, said it is resuming production at its refinery in Kawasaki, south of Tokyo. Even further to the south lies the city of Yokohama (Kanto), where the companyis trying to secure its own electricity supply so production can resume. The group’s other plants in southern Japan, including in Osaka and Wakayama, reportedly are running at full capacity.

Even if not all petrochemical plants have been affected by the catastrophe, the next few weeks could very well see serious supply problems. This is true both with regard to energy – reports indicate that most nuclear power plants on the main island of Honshu will have to be shut down forever – and to the feedstock chain, which will feel the effects of the damage to Japan’s refineries.

There already are voices prophesying sinking oil prices – after all, numerous Japanese refinery capacities have effectively been wiped out. However, such a development could easily have the exact reverse effect on the petrochemical sector, since Japan is sure to continue to crave products such as benzene, olefins and aromatics that will now need to be imported.