Russia likely to produce ULSD only for major international transport corridors, major cities

Diesel Fuel News, May 27, 2002

A preliminary report by the European Union transport minister's conference indicates that Russia's production and supply of ultra-low-sulfur diesel during this decade can only be economically justified for major international commerce corridors and big cities or tourist destinations. Reason: The vast majority of Russian vehicles are far too old to benefit much from ULSD, hence the environmental return on investment would be too small to force a massive ULSD refining switch.

Most Russian diesel is between 1,000- to 2,000-ppm sulfur, but about 6% is already below 350 ppm. Meantime, many of Russia's 25,000 refueling stations are "very small and poorly equipped" to handle a new, separate ULSD grade, explains Hart Energy Group/International Fuel Quality Center European director, Sandrine Dixson-Decleve. Eventually, Russia's fuel quality will dramatically improve, probably from 2010 and beyond.