MALAYSIAN FUEL QUALITY AND BIO-FUEL

INITIATIVE
By
Fazil Mat Isa
Group Research, Research & Technology Division
PETRONAS

5th Asian Petroleum Technology Symposium

Jakarta, Indonesia
January 23 - 25, 2007

Presentation Outline

National Energy Balance 2004

The current and future Malaysian Fuel Quality
Malaysian Bio-fuel Initiatives

General Information

MALAYSIA

Total area: 329,750 sq km Total States : 13

Climate: Tropical

Population: 23,953,136 (July 2005)

Proven Oil Reserve : 3.0 billion barrel (Jan 2003)

Oil Production: 600,000 bbl/day (2003)

National Energy Balance 2004

Primary Energy Demand (ktoe)

30,000

Oil

Natural gas

Coal

Hydro

25,000
20,000
15,000
10,000
5,000

2004

2003

2002

2001

2000

1995

1990

1985

1980

National Energy Balance 2004

Final Energy Demand, ktoe
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Year

Petroleum products

Natural gas

Coal

Electricity

Total

National Energy Balance 2004

Final Energy Mix, %
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1980

1985

1990

1995

2000

2001

2002

2003

2004

Year

Final Energy Mix (%)

Petroleum products
Natural gas
Coal
Electricity

Petroleum products

Natural gas

Coal

Electricity

1980

1985

1990

1995

2000

2001

2002

2003

2004

87%
1%
1%
12%

77%
6%
4%
13%

75%
8%
4%
13%

73%
9%
3%
15%

66%
13%
3%
18%

64%
15%
3%
18%

62%
17%
3%
18%

61%
17%
4%
18%

61%
17%
3%
18%

National Energy Balance 2004

Malaysia 2004 - Final Energy Mix (%)

Electricity
18%
Coal
3%

Natural gas
17%

Petroleum products
62%

National Energy Balance 2004

Final Energy Used by Sector, %
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1980

1985

1990

1995

2000

2001

2002

2003

2004

Year

Industrial

Final Energy Use by Sector (%)

Industrial
Transport
Residential & Commercial
Other

Transport

Residential & Commercial

Other

1980

1985

1990

1995

2000

2001

2002

2003

2004

45%
38%
13%
5%

41%
39%
13%
7%

40%
41%
12%
7%

36%
35%
13%
16%

38%
41%
13%
8%

38%
42%
13%
8%

39%
40%
13%
8%

39%
41%
13%
7%

40%
41%
13%
6%

National Energy Balance 2004

Malaysia 2004 - Final Energy Used by Sector

Residential & Commercial

13%

Transport
41%

Other
6%
Industrial
40%

Air Pollutants and Its Sources

Emissions of Pollutants to
Atmosphere by Source, 2003

Percentage of Pollutants Emitted

to the Atmosphere, 2003

SOx
13%

Stationary
Sources
12%

PM10
1%

Others
8%

NOx
16%

CO
70%

* Source from Compendium of Environment Statistics, Malaysia 2004

Mobile
Sources
80%

Gasoline Specifications
Properties

Current

Proposed Euro 2M

Proposed Euro 4M*

Research Octane Number

97 min

97 min

97 min

Colour

Yellow

Yellow

Yellow

0.013 max

0.013 max

0.013 max

Existent Gum, mg/100ml

4 max

4 max

4 max

Copper Corrosion,

1 max

1 max

1 max

40 max
74 max
75 115
180 max
215 max
2 max

40 max
74 max
75 115
180 max
215 max
2 max

40 max
74 max
75 115
180 max
215 max
2 max

To be reported

0.725 0.780

To be reported

70 max

65 max

60 max

1000 max

500 max

50 max

5.0 max

1.0 max

Lead, g/l

Distillation
IBP, C
T10, C
T50, C
T90, C
FBP, C
Residue, vol%
Density @ 15 C, kg/L
Reid Vapour Pressure, kPa
Total Sulphur, ppm
Benzene, vol%

Note: * Record based on OITC initial discussion

Proposed Malaysia Gasoline Specs versus EN 228

Properties

Proposed
Euro 2M

Proposed
EURO 4M*

EN 228:1993
EURO II

EN 228:2004
EURO IV

0.725 0.780

To report

0.725 0.780

0.720 0.775

Reid Vapour Pressure, kPa

65 max

60 max

35 - 100

45 - 100

Total Sulphur, ppm

500 max

50 max

500 max

50/10 max

Benzene, vol%

5.0 max

1.0 max

5.0 max

1.0 max

Aromatics, vol%

35 max

Olefins, vol%

18 max

Oxygen Content, wt%

2.7 max

215 max

215 max

215 max

210 max

Density @ 15 C, kg/L

Distillation, FBP C

Note: * Record based on OITC initial discussion

Gasoline in Malaysia Typical

Unit

Density

kg/L

0.7651

0.7700

0.7670

0.7670

0.7613

0.7505

RVP

kPa

77.0

61.0

73.0

64.5

54.5

66.0

RON

97.4

97.2

97.3

97.7

96.4

97.4

Sulphur Content

ppm

16

33

134

57

78

104

Benzene Content

5.72

2.93

1.64

2.30

5.07

2.61

Data: March 2004

Note:
1. All the fuels in Malaysia meet the proposed Malaysian Euro 2M gasoline specification,
except RVP.
2. To meet the proposed Malaysian Euro 4M gasoline specification, the refineries needs
to consider installation of new hardware, e.g benzene extraction unit and etc.

Diesel Specifications
Properties

Current

Proposed Euro 2M

Proposed Euro 4M*

Colour (ASTM)

2.5 max

2.5 max

2.5 max

Ash, wt%

0.01 max

0.01 max

0.01 max

Pour Point, C

15 max

15 max

15 max

Flash Point, C

60 min

60 min

60 min

1.6 - 5.8

1.6 - 5.8

1.6 - 5.8

1 max

1 max

1 max

Water by Distillation, vol%

0.05 max

0.05 max

0.05 max

Sediment by Extraction, wt%

0.01 max

0.01 max

0.01 max

Micro Carbon Residue, wt%

0.10 max

0.20 max

0.10 max

To be reported

0.810 0.870

To be reported

0.25 max

0.25 max

0.25 max

Cetane Index

47 min

49 min

Cetane Number

45 min

49 min

51 min

370 max (T90 C)

370 max

360 max

3000 max

500 max

50 max

460 max

Kinematic Viscosity @ 40C, cSt

Copper Corrosion

Density @ 15 C, kg/L
Total Acid Number, mg KOH/g

Distillation, T95, C
Total Sulphur, ppm
Lubricity, m

Proposed Malaysian Diesel Specs versus EN 590

Properties

Proposed Euro
2M

Proposed
EURO 4M*

EN 590:1993
EURO II

EN 590:2004
EURO IV

0.810 0.870

0.820 0.860

0.845

49 min

51 min

49 min

51 min

Distillation, T90, C

Distillation, T95, C

370 max

360 max

360 max

360 max

Total Sulphur, ppm

500 max

50 max

2000 max

50/10 max

11 max

11 max

0.25

0.25 max

50

460 max

460 max

Density @ 15 C, kg/L
Cetane Number

Poly Aromatics, vol%

Total Acid Number, mg KOH/g
Electrical conductivitiy, pSm
Lubricity, m

Note: * Record based on OITC initial discussion

Diesel in Malaysia - Typical

Unit

kg/L

0.8500

0.8257

0.8491

0.8180

0.8499

0.8526

Cetane Number

55.4

66.8

55.1

65.3

55.7

55.4

Distillation, T90

358.4

357.2

364.9

352.4

366.6

368.8

Distillation, T95

376.2

376.9

384.1

370.9

383.0

384.0

Sulphur Content

ppm

2800

300

500

200

260

260

Density,

Data: March 2004

Note:
1. To meet the proposed Malaysian Euro 2M diesel specification, the refineries needs to
install new hardware, e.g Distillate HydroTreater unit etc

Refineries in Malaysia

Company

Location

Capacity,
bpd

PETRONAS Penapisan (Melaka) Sdn Bhd,

Sg. Udang, MELAKA

200,000

PETRONAS Penapisan (Terengganu) Sdn Bhd,

Kertih, TERENGGANU

40,000

SHELL Refining Company Bhd, Port Dickson,

NEGERI SEMBILAN

155,000

ESSO Malaysia Bhd, Port Dickson Refinery,

NEGERI SEMBILAN

85,000

* Source from 2004 Worldwide Refining Survey, Oil and Gas Journal

National Bio-fuel Policy

The National Bio-fuel Policy was tabled to Parliament in Oct 2006.

Policys Strategic thrusts:
Producing bio-diesel fuel blend of 5% processed palm
oil with 95% petroleum diesel for transport & industry
Encourage research, development & commercialization
of bio-fuel technologies
Encourage of setting up palm oil bio-diesel plants for
export
Bio-fuel for cleaner environment
Initial introduction to government fleets by 2006.

National Bio-fuel Policy

Implementation Strategy:
Short Term:
Establishment of Malaysian Standard specifications for B5 diesel
B5 introduction to public at selected stations
Voluntary trial on B5 diesel for selected users in industrial sector
A promotional awareness program to educate public on the use of B5 diesel.
Medium Term:
Establishment of Malaysian Standard specifications for palm based methyl
ester bio-fuel for domestic use and export
Extensive B5 testing effort to obtain engine manufacturers warranties on the
use of B5 diesel.
Legislation to mandate the use of B5 diesel
Encourage establishment of commercial methyl ester plants.
Long Term:
Increase proportion of processed palm oil in diesel blend
Greater uptake of bio-fuels technology by Malaysian companies

National Bio-fuel Initiative

ENVODIESEL - is a 5% Refined Bleached Deodorised
(RBD) Olein blended petroleum diesel.

Issues & Concerns :

ENVODIESEL is not a bio-diesel by definition EN 14214 & ASTM D 6751

OEM concern on possible deterioration of the triglycerides through oxidation

leading to :
- shortened durability of injectors and injection pumps
- deposition on injectors and clogging of fuel filters

Viscous with higher carbon residue compared to typical diesel

Potential Problems with ENVODIESEL

Fuel Components

Effect

Potential Problems

Free glycerin

Corrosion of non-ferrous metals

Soaking of cellulose filters
Sediment on moving parts and lacquering

Corrosion
Filter plugging
Injector coking

Mono-, di- and

triglycerides

Similar to glycerin

Injector coking

Free water

Hydrolysis triglycerides to form fatty acids

Corrosion

Process chemicals

Entry of potassium & sodium and alkaline

earth metals
Free fatty acids hastens corrosion of nonferrous metals
Salt formation with organic acids
Sedimentation

Filter plugging

Softening, swelling or hardening and

cracking of some elastomers including nitrile
rubbers
Displacement of deposits from diesel
operation

Fuel leakage

Fatty acid methyl esters

Corrosion
Filter plugging

Filter plugging

Summary

Malaysia final energy use posted a strong growth in 2004 with

petroleum products constitute a major fraction of the final energy
consumption.

Transport sector continue to remain the main consumer of energy

with 41.2% share of the total end-use demand.

High capital investment is required for Malaysian refineries to meet

the proposed EURO 4M specifications.

Introduction of ENVODIESEL require detail field assessment to

address concern on potential issues related to the compatibility and
stability.

Thank you