Tokyo (Platts)--7Feb2012/435 am EST/935 GMT
At least one Japanese refiner has begun test production of 0.2% sulfur fuel oil from Russia's ESPO crude in a bid to diversify the sources of thermal power feedstock for the country, struggling to overcome the loss of major nuclear production capacity, sources familiar with the matter told Platts. The refiner started its experimental production of 0.2% sulfur fuel oil using ESPO in the second half of the current fiscal year ending March 31, because of limited availability of low sulfur crudes, which can be used as direct-burning feedstock as well as to to produce low sulfur fuel oil for power generation, sources said. It wasn't immediately clear whether ESPO-based LSFO has already been supplied to lower power utilities for thermal power generation. Article continues below... Sign up for Oilgram News Oilgram News brings fast-breaking global petroleum and gas news to your desktop every day. Our extensive global network of correspondents report on supply and demand trends, corporate news, government actions, exploration, technology, and much more.
At least one Japanese refiner has begun test production of 0.2% sulfur fuel oil from Russia's ESPO crude in a bid to diversify the sources of thermal power feedstock for the country, struggling to overcome the loss of major nuclear production capacity, sources familiar with the matter told Platts. The refiner started its experimental production of 0.2% sulfur fuel oil using ESPO in the second half of the current fiscal year ending March 31, because of limited availability of low sulfur crudes, which can be used as direct-burning feedstock as well as to to produce low sulfur fuel oil for power generation, sources said. It wasn't immediately clear whether ESPO-based LSFO has already been supplied to lower power utilities for thermal power generation.
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Industry sources said it would technically be possible to produce LSFO from using ESPO oil but it could be costly, depending on refining and blending processes. Japan imported ESPO crude for the first time in March 2010 when it received 269,108 kl, or 55,000 b/d, from the port of Kozmino. ESPO crude, which has a gravity of 34.7 API and sulfur content of around 0.54%, is a lighter and sweeter grade compared with Oman. Refiners in north Asia are natural outlets for ESPO crude due to the region's proximity to Kozmino in Russia's Far East.--Takeo Kumagai, takeo_kumagai@platts.com
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