November 23, 2009
Volume: 13
Issue: 28

Regulation & Legislation

Northeast-U.S. Low Carbon Fuel Standard Raising Hopes, Fears

Hoping to piggy-back on the California Air Resources Board “low-carbon fuel standard” (LCFS), state environmental officials are moving to draft a memo of understanding (MOU) next month that would guide more such LCFS schemes in the Northeast U.S. states.

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Diesel Technology Forum Hits NESCAUM LCFS Assumptions

Diesel Technology Forum Executive Director Allen Schaeffer unveiled a letter to Northeast States for Coordinated Air Use Management regarding the development of a northeast U.S. low-carbon fuel standard (LCFS) along the lines of the California Air Resources Board LCFS.

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CARB Hits Donaldson on ‘Illegal’ Diesel Emissions Control Sales

California Air Resources Board officials Nov. 17 announced that Minnesota-based diesel emissions control supplier Donaldson agreed to pay a US$650,000 fine for “selling mislabeled and illegal parts throughout California in 2007, with required corrective actions costing over $1.5 million bringing the total costs to over $2.1 million for the company.”

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Peru’s ULSD Scheme ‘in Doubt’

Hart Energy Publishing’s International Fuel Quality Center this month issued a report casting doubt on Peru’s ability to meet its own Jan. 1, 2010, deadline for 50 parts per million sulfur (Euro-4) ultra-low sulfur diesel fuel.

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Philippines Conditionally Lifts Diesel Price Cap

Philippines President Gloria Macapagal-Arroyo announced the lifting of a three-week-long cap on petroleum prices last week – but only if oil companies agree to “implement discounts and stagger future price increases,” according to a report from the Philippine Daily Inquirer.

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Technology

SulphCo Inks 2nd Evaluation Deal with Transmix ULSD Processor

Houston-based SulphCo officials announced Nov. 13 they’re signed another letter of intent to evaluate the company’s Sonocracking ultra-sound desulfurization scheme for U.S. transmix processors.

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Rentech Inks GTL MOU with Beach Petroleum

Los Angeles-based Rentech officials Nov. 18 announced a non-binding memo of understanding with Beach Petroleum to explore the feasibility of a gas-to-liquids fuels and chemical project in the Cooper Basin of Australia.

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Volvo, Mack Tout EPA/CARB 2010 Diesel Truck OKs

Volvo and Mack officials last week announced they’ve won U.S. Environmental Protection Agency and California Air Resources Board certifications for their 2010 diesel trucks using SCR.

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Feature

BP, Purvin & Gertz See Challenges for Diesel/Gasoline Balance

While the current global recession has depressed diesel/middle-distillate demand relative to gasoline, the longer-term trends still favor diesel over gasoline.
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Transport News

Volvo Truck Hints at Bottoming of Truck Market

Volvo Group officials announced Nov. 18 that its global truck deliveries fell 41% last month compared with October 2008.

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GE ,CSR Qishuyan Ink Diesel Locomotive Venture

GE Transportation officials Nov. 17 announced the formation of a joint venture company with CSR Qishuyan Locomotive Co. to develop, build and service GE’s Evolution series locomotive diesel engines in China.

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Distillate Markets

China Aiming for Euro-5 by 2015/2016: Report

China is only now adopting Euro-3 (350 parts per million [ppm] sulfur) specifications on diesel and gasoline, but will jump to Euro-5 (10-ppm sulfur) limits by 2015/2016, according to a Ministry of Environmental Protection official quoted in a Nov. 20 Reuters report.

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ConocoPhillips Delays Wilhelmshaven Refinery Diesel Upgrade

ConocoPhillips officials announced Nov. 17 that they’ve decided to delay a planned upgrade of the company’s 260,000-barrel-per-day Wilhelmshaven refinery in Germany.

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CB&I Wins Ecopetrol Cartagena Refinery Contract

Houston-based CB&I officials announced Nov. 17 that they’ve won a US$1.4 billion engineering, procurement and construction contract from Colombia’s Ecopetrol for the Refinería de Cartagena S.A. (Reficar) project.

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Samsung Wins Petrotrin ULSD Project

Samsung Engineering officials announced Nov. 18 that they’ve won a US$220 million, 40,000-barrel-per-day ultra-low sulfur diesel project at the Petrotrin refinery in Trinidad.

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Linc Energy Extends BP Offtake Deal for CTL Diesel

Linc Energy officials announced Nov. 17 that they’ve extended a memo of understanding with BP Australia enabling BP to be the first customer to purchase a minimum of 14,000 barrels per day of Fischer-Tropsch diesel produced at a future coal-to-liquids plant in South Australia.

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ExxonMobil Would Boost ULSD Output at Singapore

ExxonMobil Chief Executive Officer Rex Tillerson was quoted as saying in an interview with CNBC that his company is considering expansion of clean diesel fuel output at its Singapore refinery.

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Distillate Watch

Spot and futures prices barely moved in major world markets last week.

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Market Report: Distillate Prices, Output Flat

Middle distillate prices in major world spot and futures markets mostly stagnated last week, along with output and stocks.

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Lubrizol Starts Offering Cetane Improver in Drums

Seeking to expand the customer base for 2-ethyl hexyl nitrate diesel cetane improver, Lubrizol officials last week announced the addition of drum packaging at its cetane improver bulk storage and distribution facility in Houston

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