Motiva's Sewaren Terminal converted to ULSD Heating Oil
The refining and marketing venture jointly owned by affiliates of Shell and Saudi Aramco, Motiva Enterprises (Motiva), is planning to convert its High Sulfur Diesel Heating Oil (2000 ppm) to Ultra Low Sulfur Diesel (ULDS) (15 ppm) at its 5,000,000+ barrel Sewaren Terminal, located in New Jersey.
The conversion has been prompted by a State of New York mandate which states that all heating oil sold must remain below 15ppm sulfur. The policy will come into action on July 1 and will make the terminal able to accept deliveries of ULSD for NYMEX-based contracts via marine and pipeline.
There are also plans in place to convert two existing tanks of heating oil storage to B100 biodiesel at the same terminal. This addition of biodiesel tankage will allow Motiva Sewaren to supply various blends of biodiesel into the northeast. This comes on the back of the biodiesel act that is set to become effective as of October 1.
The ULSD conversion is expected to be completed in 2Q 2012 and the biodiesel project in 3Q 2012.