China to accelerate introduction of cleaner transport fuels

Singapore (Platts)--7Feb2013/524 am EST/1024 GMT


China aims to speed up implementation of tighter fuel specifications and improve the quality of its transport fuels, the State Council said late Wednesday.

The government said given the rapid growth in vehicle ownership, it wants to implement National Phase IV emissions standards -- with sulfur content limited to 50 parts per million -- as soon as possible, according to a work report issued by Premier Wen Jiabao posted on the website of the State Council, or Cabinet.

The statement said Phase IV standards for gasoline are now being introduced, overseen by the State General Administration of Quality Supervision, Inspection and Quarantine.

The government had previously said the deadline for transition to Phase IV gasoline would be in early 2014.

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The transition deadline for Phase IV diesel used in vehicles will be the end of 2014, unchanged from previously, the statement said.

The transition period for the switch to Phase V standard fuels will start this year, tightening sulfur specifications to 10 ppm. Phase V diesel will start to be introduced from June this year, and Phase V gasoline by the end of this year, with the transition period for both fuels expiring in 2017, the statement said.

Beijing is the only city using Phase V gasoline, which it adopted on February 1. The capital has suffered chronic air pollution which reached hazardous levels in recent weeks.

The work report also called for an acceleration of upgrades in China's refineries to secure sufficient supplies of oil products that meet the tightened specifications.

"PetroChina, Sinopec and China National Offshore Oil Corp. must first complete their scheduled enhancements, and increase motor engine technological development and research," the statement said.

In addition, the report said there would be more rigorous inspections and penalties to ensure the quality of oil products is adhered to, but it also encouraged more self-regulation within the refining industry.

State refiners are already investing in upgrades at their major refineries. Sinopec chairman Fu Chengyu said January 31 the company would complete upgrades of desulfurization facilities at its refineries by the end of this year, and start producing gasoline and diesel that meet the Phase IV emissions standard from 2014.

--Song Yen Ling, yen_ling_song@platts.com
--Edited by Irene Tang, irene_tang@platts.com