China's gasoline and diesel will catch up with the potential of the European standard market

China's gasoline and diesel will be fully upgraded to the National III standard in 2010, and the pace of China's oil product quality catching up with the world advanced level is accelerating. Shell predicts that by 2016 China's gasoline and diesel quality will catch up with European standards, which also means a huge investment in the upgrading of oil refining facilities.

As a catalyst for improving fuel cleanliness, it has become a hot spot for Chinese and foreign energy giants to compete in China.

At present, Beijing, Shanghai and Guangzhou have been upgraded to the national IV emission standards. The Ministry of Environmental Protection stipulates that all light vehicles manufactured and sold in China by 2011 must meet the national IV emission requirements. It is expected that the quality of vehicle gasoline and diesel oil in China will need to meet the national IV standard from 2013 to 2014.

The relevant experts of Shell Global Solutions Ltd. said here today that the main indicator for the improvement of fuel quality is a straight decline in sulfur content. After further upgrading to the National IV and National V standards, the reduction of diesel sulfur content must rely on more advanced catalyst technology. Shell, which accounts for 25 percent of the world's refining catalyst market, has targeted the huge market demand for upgraded quality of refined oil products in China, because the higher the quality of fuel, the more expensive the catalyst is. In the operating costs of large-scale refineries, the catalyst cost has accounted for 30% to 40%. As the demand for high-performance catalysts continues to increase in the future, Shell will be interested in establishing a catalyst production base in China.

It is reported that China's Sinopec, which has the strongest refining capacity in China, is competing with the transnational energy giants for a huge market for catalysts, and its market share is temporarily between 50% and 60%. In May 2009, Sinopec Zhenhai Refining & Chemical Co., Ltd. has produced the first batch of automotive diesel in line with Euro V emission standards in Hong Kong, which indicates that its diesel production capacity has met the world's highest standards.

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