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BW2011  JAN 29,2002       2:05 PACIFIC      05:05 EASTERN


( BW)(TX-INDUSTRIAL-INFO-RES) Uncertainty Around the Phase-Out of
MTBE Gives Producers Time to Evaluate Options, in an Advisory by
Industrialinfo.com

    Business/Energy Editors

	   HOUSTON--(BUSINESS WIRE)--Jan. 29, 2002--The following in an
advisory by Industrialinfo.com (Industrial Information Resources
Incorporated; Houston). MTBE (Methyl Tertiary-Butyl Ether) producers
across the U.S. and Canada have been preparing for the elimination or
reduction of MTBE as a fuel oxygenate for several years. The potential
extension of California's year-end deadline could buy some additional
time for gasoline producers to evaluate technologies capable of
producing suitable substitutes or securing agreements for Ethanol
feedstocks.
	   MTBE production increased tremendously in the late 80's and early
90's as legislation prompted its use in RFG (Re-Formulated Gasoline)
programs and by the mid 90's MTBE approached oversupply. Under growing
pressure from environmentalists with concerns of MTBE contaminating
water supplies in several western states, demand somewhat leveled off
in the late 90's and new capacity has rarely been seen since. In March
of 1999, Governor Gray Davis issued an executive order establishing a
self-imposed deadline of Dec. 31, 2002 to eliminate MTBE's use in all
gasoline produced in the State of California. Failed attempts to
convince the EPA to waive the oxygenate requirements for RFG fuels
combined with limited suitable substitutes might create the need to
delay the current deadline and open the door for producers to continue
production in the near future. Producers as far away as Canada and the
Rocky Mountains stand to gain greatly should the deadline be delayed.
	   Although a phase-out of MTBE across the country any time soon is
very unlikely, several U.S. and Canadian MTBE producers are investing
in studies to identify potential replacements that could be produced
with retrofits of the existing units currently in operation. Overseas
markets could hold some potential for domestic producers as there is
no indicator to suggest that overseas markets will not continue to
grow. In fact, the European Union has determined that there needs to
be tighter control over the handling and storage of MTBE and that it
does not present a health danger. Europe is expected to include MTBE
as a key player in its future development plans for cleaner burning
fuels.
	   Industrialinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities in the chemical markets as well as other
industrial sectors send inquiries to chemicalgroup@industrialinfo.com
or visit us at www.industrialinfo.com or www.iirenergy.com.

    --30--AA/ho*

    CONTACT: Industrialinfo.com, Houston
             Trey Hamblet, 713/783-5147

    KEYWORD: TEXAS CALIFORNIA INTERNATIONAL CANADA EUROPE
    INDUSTRY KEYWORD: CHEMICALS/PLASTICS ENERGY ENVIRONMENT
MANUFACTURING OIL/GAS
    SOURCE: Industrialinfo.com

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