Motiva Enterprises says it plans to convert all of its high sulfur diesel heating oil (2000 ppm) storage to ultra low sulfur diesel (ULSD) (15 ppm) at its Sewaren Terminal in New Jersey.
Motivas conversion aims to meet its customers needs under a new State of New York mandate that all heating oil sold in the state be no more than 15 ppm sulfur by July 1, 2012, the company said.
It will also allow Motiva Sewaren, a 5mn bbl refined products terminal, to take deliveries of ULSD for NYMEX-based contracts via marine and pipeline.
Motivas Sewaren Terminal is strategically located to serve distillate, gasoline, and ethanol suppliers and consumers in the northeast, said Ralph Otis, manager of the Sewaren Terminal.
The conversion of the storage at the terminal will allow Sewaren to help meet the rapidly changing needs of heating oil consumers in New York and the rest of the northeast.
In addition to the conversion to ULSD heating oil, Motiva is also undertaking a project to convert two tanks of current heating oil storage to B100 biodiesel at its Sewaren Terminal.
With the addition of biodiesel tankage and improved rail logistics, Motiva Sewaren will be able to supply multiple blends of biodiesel into the northeast over the truck rack as well as via marine vessel, it says.
Motiva is being proactive in ensuring that biodiesel blended ULSD is able to be delivered to our customers into the city of New York as a result of the biodiesel mandate going into effect October 1, 2012, said Michael Wallace, manager of supply contracts and negotiation at Motiva.
We are pleased to offer a cost-effective way of bringing in B100 by rail or water, and then distributing to the city of New York and the rest of the northeast to meet the growing need for renewable fuels, he added.
Necessary permits and approvals will be sought from the appropriate authorities, including the local planning board, the company said.
Motiva is working to complete the conversion of tankage to ULSD in the second quarter of 2012 and the biodiesel project in the third quarter.