Weak Crude Oil Prices and Uncertainty over Overseas Plant Investment

「In the petrochemical business, weaker demand in China has eased supply-demand conditions for petrochemical products. However, the global ethylene and polymer markets are expected to continue growing, incorporating the addition of crackers for relatively inexpensive ethane and moves toward lower carbon emissions. Capital investment is also expected to continue, particularly in the Middle East and India, alongside structural reforms such as converting existing refinery facilities.」

「Overseas, various capital investment plans began to resume after the U.S. presidential election in November 2024, but international markets still require time to assess the impact of the new administration's introduction of new tariff policies and other measures.」

「In petrochemical projects, supply and demand for petrochemical products has eased amid weaker demand in China. Meanwhile, the global ethylene and polymer markets are expected to continue growing while incorporating the shift toward lower carbon emissions, and capital investment is expected to continue, particularly in the Middle East and India, including structural reforms such as converting existing refinery facilities.」

「In petrochemical projects, supply and demand for petrochemical products has eased as large complexes have successively started operations in China. However, the global ethylene and polymer markets are expected to continue growing steadily, and capital investment is expected to continue, particularly in the Middle East and India.」

「In petrochemical projects, supply and demand for petrochemical products has eased as large complexes have successively started operations in China. However, the global ethylene market is expected to continue growing steadily, and further capital investment is expected.」

「Since Russia's invasion of Ukraine, Europe in particular has been moving away from Russian natural gas, and LNG investment has remained active from the perspective of energy security.」

「1) In the carbon-neutral business, government-backed efforts to promote private investment are gaining momentum globally from the perspectives of decarbonization and strengthening resilience in economic security, and capital investment is expected to increase. Specifically, multiple feasibility studies (FS) and Pre-FEED studies are progressing for fuel ammonia, and FEED is expected to begin during the current fiscal year. For sustainable aviation fuel (SAF), while the company is focusing on achieving early results from its domestic alliance with JGC Corporation amid expectations for global market expansion, costs remain an issue. For CO2 utilization, the company is considering a business strategy, particularly in methanol-related areas. 2) In existing businesses, overseas, various capital investment plans are beginning to move toward resumption in response to higher crude oil prices and recovering energy demand. Firm growth in fertilizer demand is expected to accompany population growth. In petrochemicals, inquiries for large-scale ethylene projects have emerged, but the risks of higher feedstock costs and an economic slowdown require close monitoring. In the infrastructure market, capital investment is expected in power generation businesses such as gas-fired power, biomass and waste-to-energy in Southeast Asia and Brazil. In Japan, meanwhile, demand for high-performance products, which had been sluggish, is expected to recover.」

「Against this backdrop, the business environment for our group is expected to include investment by petrochemical majors, our customers, in renewable energy, carbon capture and storage (CCS), and reducing greenhouse gas (GHG) emissions from existing petrochemical facilities. Investment is also expected in response to firm growth in fertilizer demand accompanying population growth.」

「1) In the plant business, petrochemical majors, our customers, plan to continue increasing crude oil and gas production to offset shortages of Russian crude oil and gas supply in the market, while considering investments in renewable energy, carbon capture and storage (CCS), and reducing greenhouse gas (GHG) emissions from existing facilities. Our group is pursuing various sales activities for these investment projects. We continue to meet firm demand for fertilizer, our main product, and are currently participating in a tender for a large-scale ethylene project in Southeast Asia, while focusing on markets such as India where projects are expected to materialize. We are also responding to inquiries for Quality of Life-related projects involving high-performance chemicals, pharmaceuticals and fine chemicals.」

「In the plant business, petrochemical majors, our customers, plan to continue increasing crude oil and gas production to offset shortages of Russian crude oil and gas supply in the market. At the same time, they are considering investments in renewable energy, carbon capture and storage (CCS), and reducing greenhouse gas (GHG) emissions from existing facilities. Our group is pursuing various sales activities for these investment projects.」

「1) In the plant business, rising petrochemical product prices have prompted some companies to resume investment plans for petrochemical plants. There is also firm inquiry activity for green projects involving waste plastics and other materials, as well as pharmaceutical EPC projects. Inquiries for petrochemical, fertilizer and petroleum refining facilities are gradually increasing in Japan, India, China, Brazil, the Middle East, Africa and elsewhere.」

「Against this backdrop, as part of the business environment for our group, customers in the plant business held back on capital investment plans last fiscal year due to the COVID-19 pandemic. In the current fiscal year, some companies have begun to resume their investment plans, and, with prices for some petrochemical products having risen, inquiries for petrochemical-related facilities are gradually increasing in Japan, India, China, the Middle East, Africa and elsewhere.」

「As part of the business environment for our group, customers in the plant business held back on capital investment plans last fiscal year due to the COVID-19 pandemic. In the current fiscal year, some companies have begun to resume their investment plans, and, with prices for some petrochemical products having risen, inquiries for petrochemical-related facilities are gradually increasing in Japan, India, China and elsewhere.」

「In the plant business, customers had been holding back on capital investment plans due to the impact of the COVID-19 pandemic and the shift in policy toward carbon neutrality. More recently, however, demand for some petrochemical products has increased globally and prices have risen, resulting in a gradual increase in inquiries for petrochemical-related facilities.」

「In the plant business, both upstream projects, including energy development and related facilities in oil- and gas-producing countries, and downstream projects, including petrochemical and chemical fertilizer plants, in Japan and overseas have been affected by reviews of capital investment plans and delays in investment decisions due to the spread of COVID-19, prolonged low crude oil prices, and the shift in policy toward carbon neutrality. The order environment is extremely difficult.」

「In the plant solutions sector, the COVID-19 pandemic has affected customers, including through reviews of their investment plans and delays in final investment decisions.」

「In the plant solutions sector, the COVID-19 pandemic and other factors have affected customers, including through reviews of their investment plans and delays in final investment decisions.」

「In the plant solutions sector, the COVID-19 pandemic and other factors have affected customers, including through reviews of their investment plans and delays in final investment decisions.」

「However, the COVID-19 pandemic and the resulting decline in crude oil prices have affected the plant and solutions business sectors, including through customers reviewing their investment plans and delays in final investment decisions.」

「In the plant sector, demand for facility renewals has emerged in Japan. Overseas, although capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued, downstream projects, including petrochemical and chemical fertilizer plants, are taking concrete shape, mainly in Asia, against a backdrop of solid demand.」

「In the plant sector, demand for facility renewals has emerged in Japan. Overseas, although capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued, downstream projects, including petrochemical and chemical fertilizer plants, are taking concrete shape, mainly in Asia, against a backdrop of solid demand.」

「In the plant sector, demand for facility renewals has emerged in Japan. Overseas, although capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued, downstream projects, including petrochemical and chemical fertilizer plants, are taking concrete shape, mainly in Asia, against a backdrop of solid demand.」

「In the plant sector, demand for facility renewals has emerged in Japan. Overseas, although capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued, downstream projects, including petrochemical and chemical fertilizer plants, are taking concrete shape, mainly in Asia, against a backdrop of solid demand.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although a cautious stance remains evident toward downstream capital investment, including petrochemical and chemical fertilizer plants, projects are beginning to take concrete shape, mainly in Southeast Asia and Russia, against a backdrop of firm demand.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although a cautious stance remains evident toward downstream capital investment, including petrochemical and chemical fertilizer plants, projects are beginning to take concrete shape, mainly in Southeast Asia and Russia, against a backdrop of firm demand.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although a cautious stance remains evident toward downstream capital investment, including petrochemical and chemical fertilizer plants, with some final investment decisions being delayed, projects are beginning to take concrete shape in response to firm demand in each region.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although a cautious stance remains evident toward downstream capital investment, including petrochemical and chemical fertilizer plants, with some final investment decisions being delayed, projects are beginning to take concrete shape in response to firm demand in each region.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although demand for downstream capital investment, including petrochemical and chemical fertilizer plants, remains firm in the United States, Russia, Central Asia, Iran and elsewhere, conditions are difficult, with final investment decisions being deferred due to prolonged low crude oil prices and growing concerns about the outlook for the global economy.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although demand for downstream capital investment, including petrochemical and chemical fertilizer plants, remains firm in the United States, Russia, Central Asia, Iran and elsewhere, conditions are difficult, with final investment decisions being deferred due to prolonged low crude oil prices and growing concerns about the outlook for the global economy.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although demand for downstream capital investment, including petrochemical and chemical fertilizer plants, remains firm in the United States, Russia, Central Asia, Iran and elsewhere, conditions are difficult, with final investment decisions being deferred due to prolonged low crude oil prices and growing concerns about the outlook for the global economy.」

「In the plant sector, capital investment in upstream projects, including energy development and related facilities in oil- and gas-producing countries, remains subdued. Although demand for downstream capital investment, including petrochemical and chemical fertilizer plants, remains firm in the United States, Russia, Central Asia, Iran and elsewhere, conditions are difficult, with final investment decisions being deferred due to prolonged low crude oil prices and growing concerns about the outlook for the global economy.」

「Overseas, investment plans in traditional oil- and gas-producing countries remain uncertain due to low energy prices, including the possible cancellation or postponement of future investments. Meanwhile, in Central Asian countries such as Iran and Turkmenistan, plans are under way for energy development investment aimed at new market entry and capital investment in various plants.」

「Overseas, the outlook for future investment plans in oil- and gas-producing countries remains uncertain due to the impact of low crude oil prices.」