DME use as additive in China fails to take off

11 April 2008 11:33  [Source: ICIS news]

SHANGHAI (ICIS news)--The use of domestic dimethyl ether (DME) as a fuel additive has not picked up in China despite its approval for use from the country’s petroleum and chemical industry due to a lack of fixed standards and low profits for DME producers, some producers said on Friday.

“There is no standard norm on how much DME should be added to LPG. Some small LPG producers just do whatever amount they think all right without any standard, which is harmful for both [the] LPG market and users,” said Wang Yunhua, vice manager of Jiangxi Dongneng LNG Corp.

The China Petroleum and Chemical Industry Association approved the use DME as an additive in liquid petroleum gas (LPG) on 1 January.

Other major LPG producers such as Zhuhai LPG Co, Longda LPG and Shenzhen LPG said they were waiting for a formal regulation policy to begin using DME as an additive.

LPG producers saved only yuan (CNY) 80-100/tonne ($11-14/tonne) from using DME as a fuel additive and when transportation and sales costs were figured in, DME producers did not earn enough profits to justify its use.

“So we would rather not promote DME this way,” said DME producers in Shandong and Henan provinces.

DME is used as an additive in motor fuel and in LPG for household use. 

($1 = CNY7.00)

By: Dolly Wu
+65 6780 4359

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