Ultra Low Sulfur Diesel....Insider's view....
#1
Ultra Low Sulfur Diesel....Insider's view....
I read this on another site and thought it would be of interest here.
Hey fellows, I work in product blending and shipping at a local refinery here in south louisiana. I just started 6 months ago but from what I've been observing they are treating this stuff (ULSD)like gold. For the past year they have been modifing all piping with double block & bleeds and blinds. In the past finish diesel shared piping with untreated diesel during tank transfers. Now ULSD will have its own piping and pumps. Also we just came off of a 2 month turnaround on our hydrotreater that will be processing ULSD. This hydrotreater will treat cat feed when it comes back on line but will swap to diesel mode sometimes in april. When they swap to diesel in April, the diesel leaving the hydrotreater will be on spec at 10 ppm. They are figuring it will take 2 months to flush all of the sulphur out of the tanks and piping systems in the plant. It will also give us time for any adjustment are problems they might have. I'm sure other refineries are doing the same to meet the june deadline. So you can expect the sulphur in diesel to drop off at the pump well before june. Also, the hydrotreater will have to run hotter to treat the ULSD. Hotter means more hydrogen, more hydrogen means more money. With all the work these refineries are doing to prepare for this stuff and extra process cost, you can bet your butt we will pay for it at the pump.And one more thing, the extra hydrotreating will bump the centane number up. I don't know how much but it will go up. And just to give you and idea how low is 10ppm. The ultra low sulphur gas that we put into the pipeline is 30ppm. This is a little info I got from work. I just wanted to share it with ya'll. Some of ya'll may already know this.
#2
I work in the industry also. I'm on the storage/transort side and we started recieving the intermediate sulfer last summer. The refiner's product who we store the most of has been slowly implementing ultra low, and has lowered the sulfer content 5ppm a month starting last May. We started having to ad lubricity in Aug. I was under the impression most refiners were doing this and passed on a lot of the cost early. One of the main reasons for high diesel prices last summer was because of this they didn't want to shock consumers with a 1.75-2.50 increese this year at the change over. So they started raising the price last Spring until it got to be 20-30 cents higher than gasoline and stayed there all through summer. Normally diesel is prced the same amount lower through summer to sell off winter stocks and make room for the summer run on gas, With the recoupe of the high prices from last year, I don't forsee that much of a price increese this year over last
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