The news source noted a senior China Petroleum and Chemical Corporation (Sinopec) official as saying that Chinese refiners have difficulty in bringing their petroleum products inline with higher fuel standards, as they are handling heavier crude varieties with higher sulfur content.
Chinese refiners are also struggling to meet higher fuel standards because of the low hydrocracking and desulfurizing capacity at hand. The increased cost of upgrading refining facilities and increasing hydrocracking capacity is expected to put additional financial burden on refiners and possibly pressurize them to seek higher prices for fuel, according to the Sinopec official.
Beginning in early 2008, Sinopec has started supplying the Chinese capital city of Beijing with Euro-IV standard fuels, in efforts to reduce smog ahead of the 2008 Summer Olympics. Beijing subscribed to Euro-III norms in 2005. The rest of China is expected to meet the requirements, beginning in 2010.
