OPIS
EPA's Proposed Gasoline Specs Revision To Add To NGL Oversupply

Thursday, December 01, 2011

The Environmental Protection Agency (EPA) is evaluating Tier 3 revisions to U.S. motor gasoline specifications, and potential changes could severely limit demand for butane and natural gasoline used in gasoline blending in the future, according to a joint market study issued by Bentek Energy and Turner, Mason & Company.

Not only will these proposed rules impact the refining industry, they also have significant implications for natural gas processing, storage and transportation facilities, said Russell Braziel, BENTEK vice president.

The study concluded that U.S. NGL production from gas plants is expected to increase more than 40% over the next five years, with volumes reaching at least
3.1 million b/d by 2016.

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