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Japan's jet fuel demand set to grow at a slower rate

SINGAPORE: The growth of Japan's jet fuel demand is expected to slow to 3.9 percent for the rest of this decade due to modest economic expansion and limited capacity for international flights, a Japan Airlines Co Ltd official said on Wednesday.

"Jet fuel demand would grow at a slower rate for the next five years due to modest economic growth and would remain so until Narita airport's phase two development is completed," Ryutaro Nambu, staff director of Japan Airlines fuel department said.

He was in Singapore attending a two-day oil conference.

Nambu said that while Japan's total jet fuel demand grew at an annual rate of 5.2 percent in 1990-1995, the 1994-1995 figures were given a one-off boost by the opening of Kansai airport in September 1994. And this high growth was not expected to extend towards 2000.

"The recent high growth (in Japan's jet fuel consumption) is not sustainable and the demand will grow at slower rates," Nambu said.

In 1995, Japan consumed about 11.6 million kilolitres (200,000 barrels per day) of jet fuel, up 10 percent from 1994. Of these, about 40 percent were duty-free bonded fuel while the rest was consumed domestically. Domestic consumption grew six percent on the year.-Reuter