Petrobras sees increased demand for S-50

Brazilian oil and gas giant Petrobras estimates that demand for the S-50 diesel fuel will reach five billion liters (1.1 billion gallons) in 2012. S-50 has a sulphur content of 50 parts per million (ppm). In compliance with Euro 5 standards, S-50 will be mandatory for heavy vehicles manufactured after January 1, 2012 in Brazil. Petrobas will distribute S-50 through 900 service stations. By 2013, Petrobras is scheduled to manufacture S-10 (10 ppm sulphur) diesel fuel. The company’s director, Paulo Roberto Costa, said that Petrobas produces 62% or 153,000 cubic meters of the S-50 consumed in Brazil every month and imports 92,000 cubic meters per month. Costa disclosed that the company will invest US$ 70.6 billion in logistics for downstream and oil derivative sales by 2015. Out of the total investment, US$12.6 billion will be spent on a program to improve diesel fuel quality and US$16.9 billion will be used to upgrade its refineries. (December 6, 2011)