Israel's Oil Refineries says MTBE supplies halted

Israel’s Oil Refineries (ORL) said its supply of MTBE, a needed fuel additive, has been halted and it was searching for alternative sources.

Should it not find a solution, the loss of MTBE, or methyl tertiary butyl ether, which is added to gasoline to promote more complete combustion and reduce air pollution, could have a “significant negative impact” on its operations, the company said.

Without the additive, ORL said that in several days it would no longer be able to sell its customers gasoline that meets Israeli standards.

The city of Haifa, a petrochemicals hub on Israel’s northern coast, has revoked ORL’s supplier Dor Chemicals’ permission to transport any dangerous materials following a pipeline leak.

In the meantime, ORL said it is looking to import MTBE or even produce and export gasoline products that do not meet Israeli standards.

Dor Chemicals has informed ORL that it intends to appeal Haifa’s actions in court. (Reporting by Ari Rabinovitch Editing by Steven Scheer, Reuters)

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