New diesel sulfur regs could lead to significant supply woes

New diesel sulfur regs could lead to significant supply woes: NPC

Washington (Platts)--1Dec2004


The National Petroleum Council, in a report released Wednesday, said the move
to ultra low sulfur diesel has the potential for "significant supply
disruptions" in the US. NPC, the advisory body to the US Energy Department,
also said it believes the transition period for ULSD is "likely to be more
difficult and longer than historically associated with major product
specification changes. This is due to the difficulty anticipated in
maintaining and assuring the specified sulfur level and needed volumes during
distribution from refiners to the ultimate consumer." 

The US will reduce the maximum sulfur specifications in diesel to 15 parts per

million beginning in 2006. The NPC report said enforcement of the new cap

without an adequate tolerance for test reproducibility could "result in

large quantities of diesel being disqualified" under the new standard.

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