Tuesday, July 2, 2013

Sub Octane Gasoline

Conversion to Sub Octane Gasoline in September 2013

Effective mid-September, straight 87 octane gasoline will not be produced at the refineries and therefore not available at the terminals.  In place of the straight 87 octane there will be an 84 octane gasoline (called Sub-Octane or V-Grade).  You will also be able to access 91 octane gasoline (A-Grade) and ethanol.

Potential product blends are listed below.  We do caution that nothing is set in stone.  Pipeline personnel are still working on what blends will be available and what each terminal will offer. 


84 Clear                100% V-Grade   (cannot pull V-grade out of terminal without blending)

87 Clear                50% A-Grade/50% V-Grade

87 Oxy                  90% V-Grade/10% Ethanol

89 Clear                75% A-Grade/25% V-Grade

89 Oxy                  30% A-Grade/60% V-Grade/10% Ethanol

91 Clear                100% A-Grade

91 Oxy                  60% A-Grade/30% V-Grade/10% Ethanol


As you can see from above, the blending of ethanol may become more prevalent.  Fauser Energy Resources maintains its own ethanol inventory at 20 terminals as well as having third-party supply at the other terminals in the Midwest.  New locations will also be announced as they come online.

Pipelines have two options for conversion to the Sub-Octane product.  The first is a hard transition, meaning all terminals along a pipeline would shut down and reopen with the new Sub-Octane at the same time on September 16th.  The second option is more gradual.  The pipeline may opt for the terminals to convert to the new product at different points in time.  This would depend on product shipments (loading out of all 87 octane product until gone), storage at the terminals, etc.  Fauser Energy Resources has a goal of keeping you informed as each terminal makes the physical switch to the Sub-Octane product.  We will also make you aware of the product slate at each terminal as it changes.

If you have any questions please contact your Fauser Energy Resources marketer. 
Thank you for your business, we appreciate it.