Canadian sulfur regulations to cost refiners millions

Shell Canada Ltd., Calgary, says it will cost up to $200 million (Can.) for it to meet federal regulations reducing the sulfur content of gasoline.

Last year the federal government approved regulations requiring sulfur content be cut to 150 ppm from 350 ppm between mid-2002 and 2004. The standard will drop to 30 ppm by Jan. 1, 2005.

Shell said the rule would require modifications at its Sarnia, Ont., and Montreal, Que., refineries costing $100 million to $200 million. A refinery at Edmonton, Alta., already meets the requirements.

Imperial Oil Ltd., Canadian unit of ExxonMobil Corp., said it would cost $400 million to $500 million to make changes to its four refineries.

Petro-Canada, Calgary, estimates its refinery upgrade costs at between $350 million and $450 million.

Suncor Inc., Calgary, said its costs for upgrading a refinery at Sarnia, Ont., would be between $40 million and $50 million.

Husky Energy Inc., Calgary, has not disclosed the costs of upgrading a refinery at Prince George, BC, but said they will be substantial.

The companies have begun the process of selecting technology for the upgrades.