Asia’s hydrogen gas demand will increase as its oil refineries use the gas to produce low-sulphur fuel to comply with new environmental regulations. Asian countries have tightened their fuel standards by decreasing the amount of allowed sulphur, thus pushing refiners to upgrade facilities, in order to produce compliant diesel and gasoline supplies.
Namely, as Linde Plc’s Chief Executive Officer Steve Angel told Reuters, the demand for hydrogen is increasing at a much faster rate than GDP growth.
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Overall, Asian countries have strengthened their fuel standards by decreasing the amount of allowed sulphur, thus forcing refiners to upgrade facilities, in order to produce compliant diesel and gasoline supplies.
With this development, low-sulphur fuel oil or marine gasoil demand is expected to grow, making refiners like Exxon in Singapore to invest billions of dollars in new units, that will make them flexible to process cheaper heavy sour crude.
Mr. Angel added that there are some projects expected, in which refiners will be looking to take bottom of the barrel, residue products, and put them through a gasification process, aiming to produce hydrogen.
With this process, refiners will be able to choose between processing low- or high-sulphur crude, based on prices of the raw materials.
