Japanese refiners preparing for 10 ppm gasoline sulfur limit by 2007-08

June 4, 2003
Japanese oil companies have accelerated their downstream investment plans to prepare themselves for an anticipated 10 ppm gasoline sulfur limit by 2007-08. No such regulation exists there yet.

By OGJ editors

HOUSTON, June 4 -- Japanese oil companies have accelerated their downstream investment plans to prepare themselves for an anticipated 10 ppm gasoline sulfur limit by 2007-08. No such regulation has been approved there yet.

Refiners voluntarily are moving toward a 10 ppm standard to ensure their business survival because of the type of investment required to do that, researcher Tomoko Hosoe said in a recent report issued by the Honolulu-based FACTS Inc.

An official sulfur reduction for Japanese gasoline to 50 ppm maximum from the current limit of 100 ppm maximum is slated for 2005.

Government spokesmen and the Japan Automobile Manufacturers Association have suggested that a 10 ppm sulfur standard for gasoline likely will be effective by
2007-08, FACTS said.

"We believe the majority of the refiners will be able to meet the anticipated timetable. . .considering the progress oil companies are already making in upgrading their refineries," FACTS said.

Some refiners already market a premium gasoline containing 10 ppm sulfur or less, particularly in Tokyo, Nagoya, and Osaka. Currently, most refineries produce regular gasoline with a 30-50 ppm sulfur content, FACTS said.