Japan's Idemitsu plans $150 mln upgrade of FCC unit

TOKYO, July 31 (Reuters) - Japan's third-biggest oil refiner, Idemitsu Kosan Co (5019.T), said it plans to invest 16 billion yen ($148.2 million) to upgrade the 45,000 barrels per day fluid catalytic cracking (FCC) unit at its 220,000 bpd Chiba refinery.

The major work on the secondary unit is the first since it was built in 1971 and is scheduled to be completed between April and September 2011, a company spokesman said on Thursday.

The move would boost output of high-value-added petrochemical products and gasoline reformate but cut output of cheaper fuel oil.

After the upgrade, gasoline reformate ouput will increase to 1.5 million kilolitres (about 26,000 bpd) a year from 1.3 million kl (about 22,400 bpd). It will also boost production of propylene and other petrochemical products, the spokeswoman added.

The Chiba refinery is east of Tokyo. ($1=107.94 Yen) (Reporting by Osamu Tsukimori, editing by Anthony Barker)