Formosa to start producing low-sulfur fuels

Taiwan’s privately owned Formosa Petrochemical Corp. will produce 10 parts per million (ppm) sulfur diesel fuel in 2008. Currently, Japanese refineries, South Korea’s SK Energy and S-Oil Corp. are the only refiners in Asia that can produce gasoil with such low sulfur content, and demand for this grade of gasoil is rising. Most of the gasoil produced in Asia with sulfur contents of 10 ppm or less are exported to Europe and the U.S. Recently, demand from Australia and New Zealand has increased, as these governments’ 2008 deadline to switch to gasoil with sulfur content of 10 ppm, from 50 ppm, is approaching. (October 1, 2007)