BEIJING, Sep. 2, 2010 (Xinhua News Agency) -- Sinopec (NYSE:SNP) Corp. (SNP.NYSE; 0386.HK; 60002 8.SH) president Wang Tianpu has shown that Sinopec, China's largest fu el retailer, would not support widespread use of methanol gasoline or M-gasoline, casting a shadow on promotion of M-gasoline throughout Chi na.
"Given the M15-gasoline (gasoline mixed with 15 percent methanol) w ould bring harmful substance to human beings during burning and M85 ga soline (gasoline mixed with 85 percent methanol) requires remolding of
engines, there is no necessity to promote M-gasoline now," said Wang.
Currently, only Shanxi province in north China is encouraging uses of M-gasoline and some problems do happen in the process of promotion,
like corrosion to motorcar engine and parts.
A deputy secretary general of National Alcohol Ether and Alcohol Et her Clean Vehicle Specialized Committee believes that all problems con cerning to M-gasoline can be solved and this should not be a barrier t o M-gasoline promotion.
An industrial insider reckons Sinopec holds negative attitudes towa rds M-gasoline because large-scale M-gasoline uses would affect its ba lanced gasoline supply and demand. China's annually gasoline sales sta (OOTC:SRPIF) nd at 70-100 million metric tons (tonnes), almost flat with the countr y's consumption.
According to the insider, China's methanol production is far dwarfe d by its enormous production capacity, indicating methanol output woul d swell fast if national policy allows widespread use of M-gasoline.
Some coal-rich provinces, on forecast of bright future, are still m aking efforts to promote M-gasoline. Tangshan, a city of Hebei provinc e in north China, has been appointed as a new model city for promoting
M-gasoline.
In north China's Shandong province, Shandong Mingshui Great Chemica l Group is teaming up with Shanxi Jiaxin Energy & Chemical Industry Co ., Ltd to build a methanol fuel mixture center, and Yanzhou Mining Guo hong Company has developed clean methanol for M15 gasoline.
Methanol market is now undergoing cold winter with operational rate
at low level and its downstream industries like DME, HCHO and acetic acid are all in doldrums. (Edited by Lin Fanjing, linfanjing@xinhua.or g)
