Thailand’s move to Euro IV standards will not affect export of 500 ppm sulfur gasoil

Despite its move to Euro IV standards for gasoil and gasoline, industry experts predict that Thailand will see little change in its export volumes of 500 ppm sulfur gasoil. Euro IV standards allow for a maximum sulfur content of 50 ppm in gasoline and gasoil, and limits the benzene content of gasoline to 1%. The Thai government said that the shift to Euro IV standards will cut the country’s emissions of sulfur dioxide by 12,000 mt/year and benzene emissions by 181,000 mt/year. Thai refiners will thus begin to focus on the production of 50 ppm sulfur gasoil for the domestic market and reduce output of 500 ppm sulfur gasoil. But the move is not expected to affect export volumes of 500 ppm sulfur gasoil to overseas markets such as Singapore, Malaysia, the Philippines and Vietnam because Thai refiners will be able to segregate lines and continue production of 500 ppm sulfur gasoil for export. Thailand’s oil refiners spent a combined Baht 50-50 billion (US$1.6 billion-1.9 billion) in upgrading their facilities for the production of Euro IV–compliant fuels. Thai refiners will begin selling Euro-IV compliant fuels in the first quarter of 2012. (January 6, 2012)