Peter Barry
Question:27 Mr. Barry asked the Minister for Energy if he will outline the implications for the Whitegate refinery of the new sulphur-content EC regulations adopted by the Council of Environment Ministers.
Written Answers. - Sulphur-content Regulations.
In March this year, the EC Council reached agreement on proposals for the progressive reduction of the sulphur content of gasoils.
The most significant aspect of the proposal relates to new standards for road diesel. By October, 1994, the maximum permitted sulphur content of road diesel will be 0.2 per cent. A sulphur content of 0.05 per cent will apply not later than October, 1996, but member states have committed to support its gradual availability before that date.
The new standards will, of course, have considerable implications for European refining, including the refinery at Whitegate. At present Whitegate is producing gasoil and road diesel with a sulphur content of 0.13 per cent to 0.14 per cent, which is a lower level than that required under existing European standards of 0.2 per cent to 0.3 per cent, and is already meeting the October 1994 specification.
The level of investment necessary to produce gasoil and diesel to the required 1996 specification would depend on a number of variables, including the availability and price of low sulphur crudes over the coming years and developments in the market for road diesel, both in Ireland and abroad. It is not possible at this stage to forecast these developments, or to estimate the timing of any investment and the costs which might arise for the refinery.
It is Government policy to achieve an upgrade of the refinery. In any such upgrade, it would be a requirement that the refinery be able to meet the higher environmental standards for petroleum products which will apply within the EC.