CLEAN FUEL INITIATIVES IN ASEAN AN UPDATE

1
CLEAN FUEL INITIATIVES IN ASEAN (AN UPDATE)
14th ASCOPE PR BDC MEETING (DRAFT)
2
SUMMARY

• Most of ASEAN countries is implementing the
  Clean Fuels program in various phases, albeit at
  a slower pace over the coming decade since it
  involve high investment cost to upgrade existing
  refineries.
• Most of the countries follows the European
  Standards but each country implemented varying
  specification limit.
• Thailand is ahead in the above program followed
  by other countries like Philippines, Malaysia,
  Singapore, Indonesia and Vietnam. Other countries
  Brunei and Myanmar has yet to announce their
  future clean fuels program.

3
SUMMARY

• Most of ASEAN countries has announce their
  proposal to implement the Euro IV specs by 2010.
  However, without any major investment on refinery
  upgrading, most of these countries are unable to
  meet the stringent Euro IV specs.

4
BRUNEI

• Since 2001, Diesel S specs was reduced to 1000
  ppm with 47 cetane index.
• Since 2001, Mogas is fully unleaded (ULG 92 and
  ULG 85) with specs of 1000 ppm S and 5 vol.
  benzene.
• Existing refinery will not be able to meet the
  Euro standards.
• No reported plan to move to the Euro Mogas and
  Diesel standards.

5
MYANMAR

• Current diesel specs of 2000 ppm S.
• Mogas still fully leaded at 0.15 gm/l.
• Existing refinery will not be able to meet the
  Euro standards.
• No reported plan to move to the Euro Mogas and
  Diesel specs.

6
CAMBODIA

• Both leaded and unleaded Mogas are marketed since
  most of the products are imported.
• Leaded Mogas (RON of 87 and 95) with 0.15 gm/l
  lead and 1500 ppm S content. Unleaded Mogas (RON
  of 92 and 97) with 1000 ppm S content.
• Similarly for Diesel a mixture 2500 and 5000 ppm
  S are marketed.
• No reported plan to move to Euro Mogas and Diesel
  standards.

7
INDONESIA

• Unleaded mogas (ULG 88, 91 and 95) introduced in
  greater Jakarta Cerebon area in July 2001 and
  Bali in January 2003. Current ratio of unleaded
  to leaded mogas is 40 to 60. With the
  implementation of the Blue Sky Project leaded
  mogas is project to be phased out and S lowered
  from 2000 to 1000 ppm by 2006.
• The planned upgrading of the Balogan refinery
  with new cat. reformer and isomer unit and
  Cilacap refinery with a new isomer unit,
  Pertamina will be able to lower benzene from 5
  to 3 in Java and Bali region and surrounding
  areas by 2008 as part of the Blue Sky Project
  thus able to meet the Euro III specs.

8
INDONESIA

• Current diesel specs still maintained at 5000 ppm
  S and cetane nos 45.
• By 2006 all Pertamina refinery is expected to
  produce Euro III specs of 350 ppm S and T95 of
  350 0C.
• No investments plan has been announced to meet
  Euro IV standards for mogas and diesel.

9
MALAYSIA

• Malaysia deferred the implementation of the Euro
  II Mogas specs to late 2006. The specs changes
  are S from 1000 to 500 ppm with a 5 benzene
  limit. However, S typical actual average is
  100ppm.
• All the refineries (Petronas, Shell and
  Exxon/Mobil) unable to meet the Euro IV specs of
  50 ppm S and 1 benzene planned for 2010.
  However, no upgrading investments plan has been
  announced.

10
MALAYSIA

• Similarly the implementation for the Diesel Euro
  II was deferred to late 2006. The specs changes
  are lowering of S from 3000 to 500 ppm, increase
  cetane nos. from 45 to 49 and T95 distillation at
  370 0C.
• Malaysia will planned to introduce Euro IV specs
  by 2010 with the proposed specs limits of 51
  cetane nos, 50 ppm S and T95 distillation at 340
  0C .
• All the refineries (Petronas, Shell and
  Exxon/Mobil) unable to meet the Euro IV
  standards. However, no upgrading investments plan
  has been announced.

11
PHILIPPINES

• Implement the Clean Air Act (CAA) since 1999 with
  introduction of fully Unleaded Mogas.
• Since early 2006 only ULG 93 and ULG 95 Mogas in
  the market with 500 ppm S limit, 0.005 gm/l lead,
  2 vol benzene and 35 aromatics. No near term
  plan to move to Euro IV.
• Petron will be able to meet the Euro IV specs of
  1 benzene, 50 ppm S, 35 aromatics and 10
  olefins with upgrading investment of the LN
  isomerisation unit and hydrotreaters. However,
  Shell will not be able to meet the Euro IV specs.

12
PHILIPPINES

• Current diesel specs limit at 500 ppm S since Jan
  2004. Other specs are T90 distillation at 370 0C
  and cetane nos 48.
• Petron able to meet the Euro IV specs of 50 ppm
  S and 15 aromatics with upgrading investment of
  gasoil hydro-treaters and a new hydro-cracker.
  Plan to further lower the S to 10 ppm by 2011.

13
SINGAPORE

• Current Unleaded Mogas specs limit at 500 ppm S
  and 5 vol benzene since 2001. No near term
  plan to move to Euro III or IV. However, the
  Government is expected to legislate to 1 benzene
  in near future.
• All refineries (SRC, Exxon Mobil and Shell)
  unable to meet Euro IV specs of 1 benzene, 50
  ppm S, 35 aromatics and 10 olefins.
• Current diesel S limits lowered to 50 ppm since
  early 2006 to meet Euro IV specs.

14
THAILAND

• Current Unleaded Mogas of ULG 91 and 95. Since
  2004 specs limit at 500 ppm S, 3.5 vol benzene
  and 35 vol aromatics.
• Plan to further lower S from 500 to 150 ppm in
  2006 to meet Euro III specs.
• Proposed to proceed to Euro IV specs by 2010.
  Most of the refineries will not be able to meet
  the Euro IV specs of 1 benzene, 50ppm S and 10
  olefins.

15
THAILAND

• Current diesel specs limit at 350 ppm S since
  January 2004 (Euro III). Plan to lower S further
  to 150 ppm by 2008.
• Proposed to proceed to Euro IV specs by 2010.
  Most of the refineries will not be able to meet
  the Euro IV specs of 50 ppm S and PNA of 11.

16
VIETNAM

• Fully unleaded Mogas since 2000 with three grades
  RON 90, 92 and 95. Current limit of 1500 ppm S
  and 5 benzene.
• Proposed to lower the specs by mid 2006 with 500
  ppm S, 2.5 benzene and max 10 Aromatics.
• Current diesel specs a mix of 500, 2500 and 5000
  ppm S.
• Proposed to lower the specs by mid 2006 with 500
  and 2500 ppm S specs.
• With the commissioning of both the new
  refineries, Vietnam will be able to meet Euro III
  and IV specs respectively.