Americas News
U.S. Refiner Selling New Ulta-Low Sulfur Distillate Fuel
Independent U.S. refiner Continental Refining Co. LLC (Continental) says it is now selling a new distillate fuel similar to DMA grade marine gas oil (MGO) for use by Great Lakes shipping, tug, and towboat customers.
The fuel has a T-90 distillation temperature of more than 700 degrees Fahrenheit and less than 0.001 percent sulfur content and is intended for category 2 and 3 marine engines.
Continental already sells low-sulfur diesel on the U.S. East Coast for oceangoing markets, and its refinery has a capacity of 30,000 barrels per month.
The company says the lower cost of the diesel fuel compared with ultra low sulfur diesel (ULSD) can provide a strategic advantage in shipping with the North American Emissions Control Area (ECA), potentially offering savings of 10 cents per gallon
"Expanding into niche markets enables Continental Refining Company to continue to grow, remain competitive and strengthen our long-term prospects in Somerset, Kentucky," said CEO Demetrios Haseotes.
"Providing low sulfur marine diesel as a low cost fuel option to American Lakers and towboats while meeting ECA Area 1 standards is smart business for freight operators and consumers when you consider that one towboat has the carrying capacity to push 40 barges – that's 2,400 trucks that don't have to clog up U.S. highways."
The refiner says it is also upgrading its facilities for processing transmix products, created when different fuels mix together in distribution systems.
"Because transmix contains a mixture of different fuels, it cannot be sold without further processing and is more difficult to process than other types of fuel," the company said.
"Transmix processors provide a valuable service by making sure that these mixtures of fuels do not create bottlenecks in the fuel distribution system and that the fuel is used rather than discarded."
The U.S. Environmental Protection Agency (EPA) has been investigating ship owners and operators that claimed they were unable to obtain low-sulfur fuel for use within the ECA.
