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What drives China? Soon, cleaner fuel

Motorists across China will switch to 150 parts-per-million (ppm) sulphur gasoline from January 1, 2010, from 500 ppm, and a lower content of benzene, a carcinogen

Posted On Saturday, November 21, 2009 at 02:50:37 PM

Beijing: Lorry driver Zhang Jianwei isn't worried about cleaner fuel requirements that come into force in China next year, raising the price of motor fuels -- he will just keep buying cheaper, dirtier diesel at smaller stations.
 
Zhang's example underscores the cautious approach the world's second largest oil consumer is taking to introducing tougher diesel and gasoline specifications, and shows why there will be little initial impact on China's fuel trade.
 
Motorists across China will switch to 150 parts-per-million (ppm) sulphur gasoline from January 1, 2010, from 500 ppm, and a lower content of benzene, a carcinogen, three years after the specifications were first announced.
 
The changes, a hard sell to motorists already facing record pump prices, won't bring China's fuel standards into line with even stricter Western market benchmarks, tempering the risk of Asia's leading gasoline seller flooding export markets with still more fuel.
 
"It will not allow them to break into advanced markets yet, but I don't think they aimed for that anyway," said Al Troner, managing director of AP Energy Consulting, and an expert on Asian fuel specifications.
 
But its start to move Chinese oil firms beyond their traditional role of being self-sufficient toward being more like aggressive exporters in South Korea and more recently, India. For example, 150-ppm gasoline will probably help boost Chinese sales into Australia, which uses a similar grade.
 
Also from January 1, China is launching automotive diesel with a sulphur content of 350 ppm, to differentiate from the 2,000-ppm general diesel used by its vast rural and industrial sectors. However an 18-month "transitional" period is allowed before the specification becomes mandatory. (Reuters)


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