Status of Petroleum industries and Trends of Quality in Korea

Korea Institute of Petroleum Quality

Contents
1. Status of Petroleum Industries in Korea 2. Status of Automobile Industries in Korea 3. Status of Petroleum Product Distribution 4. Quality Control of Petroleum Product 5. Future Trends of Petroleum Quality Spec. 6. Others

1.

Status of Petroleum Industries in Korea

Change of energy consumption in Korea

The ratio of petroleum consumption is decreasing, but LNG and Atomic energy is increasing
100%
2.6 6.8 1.6 1.8 1.7 1.9 2.1 2.0 1.7

2.0

14.2 3.2

11.1 6.1

14.1

14.1

14.3

15.1

14.8

16.1

Others Nuclear energy LNG Petroleum Bituminous coal

80%

9.8

10.5

11.1

11.2

12.9

13.3

60%

61.1 53.8 62.5

52.0

50.6

49.3

47.6

45.6

44.4

40%

7.6

20%
22.5

15.5 16.7 10.7 2.0 20.6 1.6 21.2 21.6 21.6 22.0 21.9

0% 1980 1990

1.9

1.9

2.1

2.0

2.1

1995

2000

2001

2002

2003

2004

2005

Main Energy Indicator

Energy dependence on overseas : 96.8%, the amount of energy imports : 66.7 billion dollars (2005)
Classification 1st energy consumption
(rate of increase)

Unit
million TOE

80 43.9 (1.6) 61.1 73.5

90 93.2 (14.1) 53.8 840 87.9

00 192.9 (6.4) 52.0 2,438 97.2 378.9 (66.6) 23.6 8.5

03 215.1 (3.1) 47.6 2,438 96.9 383.1 (18.6) 21.4 3.1

04 220.2 (2.4) 45.7 2,438 96.7 496.0 (29.5) 22.1 4.7

05 228.6 (3.8) 44.4 2,735 96.8 667 (34.5) 25.5 4.0

(%) %
1000 B/day

Dependence on Petroleum Refining ability Energy dependence overseas on

Amount of imports
(rate of increase)

100 million $ (%)

66.2

109.1

Energy ratio of the gross import GDP growth rate

% %

29.6 -1.5

15.6 9.2

<Source> MOCIE

Consumption
The largest country of petroleum consumption is U.S. and Japan is the 3rd. Korea is the 7th (230 million barrel/yr)
(UNIT : 1000 B/D)

Classification

2002

2003

2004 Rank

2005

U.S.

19,761

20,033

20,517

1 3 7

20,655 5,360 2,308

JAPAN KOREA

5,359 2,282

5,455 2,300

5,288 2,280

<Source> BP Statistics (June 2006)

The comparison of petroleum industries

Refining ability : U.S, China, Russia and Japan followed by Korea (5th) Korea, the 4th (crude imports volume per year)
Classification Petroleum consumption (1000 B/day) Petroleum refining ability (1000B/day) Crude oil imports (1000B/day) 1
U.S. 20,655

2
CHINA 6,988

3
JAPAN 5,360

4
RUSSIA 2,753

5
GERMANY 2,586

6
INDIA 2,485

7
KOREA 2,038

U.S. 17,355

CHINA 6,587

RUSSIA 5,412

JAPAN 4,531

KOREA 2,598

INDIA 2,558

GERMA NY 2,322

U.S. 10,357.6

JAPAN 3,923.1

GERMAN Y 2,979.6

KOREA 2,729.0

FRANCE 1,895.2

CHINA 1,559.6

ITALY 1,767.0

<Source> 1. Petroleum consumption, Refining Ability (BP statistics in 2006 & 2005) 2. Crude Oil imports (World Oil Trade, September 2004) * Including bunkering in petroleum consumption

Status of crude oil import

Dependence : 83% on the Middle East, 11% on Asia and 5% on Africa
The Middle East The Asia The Africa The U.S & Europe

90.0 80.0 73.3 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2002 2003 2004 2005 2006.1-6 17.3 12.5 4.5 4.9 4.2 3.8 79.5 81.8 78.1 83.1

14.1 5.2 2.6

13.3 4.1 0.9

11.2 5.2 0.4

<Source> MOCIE

Energy dependence of the Middle East Area

Korean and Japan depend on the high level.
KOREA 82.1 CHINA 41.2 JAPAN 90.0 U.S. 23.4 GERMANY 7.7 (UNIT : % ) FRANCE 29.4

NOTE) For Korea, China, Japan and U.S (as of 2006. 5 ) For France & Germany (as of 2003)
100.0 90.0 80.0 70.0 60.0 50.0 41.2 40.0 30.0 20.0 10.0 0.0 JAPAN KOREA CHINA FRANCE U.S. GERMANY 7.7 29.4 23.4 90.0 82.1

<Source> MOCIE

Record & outlook of exports of petroleum product

Petroleum export is increasing rapidly. In 2006, it is expecting to be 270 million barrel.

Classification

Record in 2004

Record in 2005

Rise & Fall rate (%) 51.2

Prospects in 2006

Rise & Fall rate(%)

Sum (100milion$ ) Petroleum product Volume (million$) Unit cost ($/B)

101.7

153.8

200.5

30.4

235.5

262.8

11.6

270.5

2.9

43.2

58.3

35.4

74.1

26.7

<Source> MOCIE

The ratio of petroleum exports & exporting countries in 2005

Mainly ranks diesel, B-C oil, aviation oil, etc,. Korea is Importing to China, Japan, U.S, etc,.
(Export ratio)
PRODUCT GASOLINE KEROSEN E DIESEL BC AVIATION OILS NAPTHA OTHER S

Ratio(%)

5.5

1.7

32.7

21.4

20.8

9.8

8.1

* The total quantity : 262.7 million Barrel (15.38 billion $ ) (Export countries) RANK Country Ratio(%) 1 China 26.7 2 Japan 24.4 3 U.S. 11.9 4 Singapore 6.8 5 Hong-Kong 3.8 6 Vietnam 2.4

The market share of petroleum importers

Registration of petroleum importer (as of 2006) Private : 17, Import as proxy : 9, Import & Sale : 39 (Total 65 companies) The number of petroleum importers has decreased from 2002 due to the expensive price of crude oil At present, forms 1.68 % of market share
(UNIT : % ) YEAR Gasoline Kerosene Diesel 00 01 02 03 04 05

1.97

4.50

7.86

5.94

3.00

1.68

To development of their facilities

Lower level in Korea, however, are introducing them actively to strengthen environmental restriction and product export
(UNIT : 1000 B/D) Atmospheric Refining 17,126 5,341 4,672 6,246 2,808 2,324 2,344 Facilities RFCC 9,537 856 1,147 796 393 1,124 858 Catalytic Reformation 3,508 746 672 156 230 283 388 Subtotal 13,045 1,602 1,819 952 623 1,407 1,246 Ratio (%) 76.2 30.0 38.9 15.2 22.2 60.5 53.2

Country

U.S. Russia Japan China Korea Italy Germany

<Source> 2005 Oil & Gas Journal databook, January of 2006

To develop facilities in Korea

S-Oil refineries has 32.4%, the highest level of Korea refineries
(UNIT : 1000 B/D) Refinery Atmospheric Refining Facilities RFCC 102 90 143 58 393 Catalytic Reformation 45 81 45 25 34 230 subtotal 147 171 188 83 34 623 (Plan) (60) (55) (150) (70) (55) (390) Ratio (%) 17.5 (24.6) 23.7 (30.2) 32.4 (31.9) 21.3 (39.2) 12.4 (32.4) 22.2 (30.8)

SK GS-Caltex S-OiL Hundai Oilbank SK incheon Total

840 723 580 (1,060) 390 275 2,808 (3,288)

Note) ( ) means an expectation figure after completion in 2010 <Source> Korea Petroleum Association Magazine [Sep. of 2006]

The quantity of saving for emergency

153,771 thousand barrel in Korea - There are 9 reserve resources and 4 of them are constructing in Ulsan and Yeosu
(Unit : 1000 B) Quantity of saving Classification Government U.S. Japan Germany Korea France Spain 695,938 321,303 192,795 72,801 73,119 34,946 1 2 3 5 4 6 Private 1,052,658 303,053 87,044 80,970 123,343 95,405 1 2 5 6 3 4 1,748,596 624,356 279,839 153,771 196,462 130,351 1 2 3 5 4 6 TOTAL

<Source> IEA Statistics, at late of May, 2005

2.

Status of Korea Automobile Industries

Status of Automobile industries

The number of auto production is 370 million cars (as of 2005) - Domestic demand : 30 %, export : 70% The number of auto possession was 15,734 thousand cars (as of 2006.8)
(UNIT : CARS] PRODUCTI ON 2,946,329 3,147,584 3,177,870 3,469,464 3,699,350 2,390,814 SALE IMPORT DOMESTIC 1,451,450 1,622,268 1,318,312 1,093,652 1,142,562 723,736 EXPORT 1,501,213 1,509,546 1,814,938 2,379,563 2,586,088 1,644,814 16,638 30,491 30,500 34,712 46,221 34,655 POSSESSIO N 12,914,613 13,949,441 14,587,333 14,934,474 15,397,095 15,734,200

Year

2001 2002 2003 2004 2005 2006.8

<Source> KAMA, Automobile Statistics Monthly Magazine, October

Possession Status by the type of car

The type of car - passenger car (72%), van(20%), truck and so on (20%)
(UNIT : CARS) PASSELNGE R CAR 8,889,349 9,737,430 10,278,940 10,620,574 11,122,214 11,452,800

YEAR

TOTAL

VAN

TRUCK

AMBLETTE

2001 2002 2003 2004 2005 2006.8

12,914,613 13,949,441 14,587,333 14,934,474 15,397,095 15,734,200

1,257,424 1,257,318 1,247,095 1,204,625 1,124,961 1,108,509

2,728,464 2,894,412 3,016,461 3,062,366 3,102,219 3,124,170

39,376 42,281 44,837 46,909 47,701 48,721

<Source> KAMA, Automotive Statistics Monthly Magazine, October

The market share of import cars

From 2000, it increase steadily as 0.4% and in 2006 it reaches 4%, Lexus 17%, BMW 16%, Mercedes-Benz 11%
Classification Market share #Sale (market share) Sales (market share)
16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 0.7 3.5 1.3 5.9 1.9 2.6 3.3 8.7 4.3 Market share Sales 10.7 11.8 14.5

(UNIT : CARS, 100 MILLION ) 02

1.3% 16,119 (1.3%)

00
0.4% 4,414 (0.4%)

01
0.7% 7,747 (0.7%)

03
1.9% 19,481 (1.9%)

04
2.6% 23,345 (2.6%)

05
3.3% 30,901 (3.3%)

06
4.3% 9,767 (4.3%)

5,589 (3.5%)

12,058 (5.9%)

15,351 (8.7%)

17,678 (10.7%)

21,998 (11.8%)

6,917 (14.5%)

<Source> KAMA

3.

Status of Petroleum Product Distribution

Distribution trends of Petroleum product by year

Regular gasoline Vs Premium gasoline Market share of Premium gasoline increase steadily like 0.1% in 2002, 0.2% in 2003, 0.3% in 2004, 0.5% in 2005
(UNIT : MILLION B, %) Year Total consumption 743.7 762.9 762.9 752.3 761.1 375.9 Gasoline Kerosene Diesel BC Naphtha LPG

2001 2002 2003 2004 2005 2006.1~6

62.7 64.1 60.5 58.2 59.6 28.8

61.7 58.5 52.9 43.1 39.4 17.2

132.2 138.0 145.4 143.8 142.5 73.5

123.8 116.9 111.4 101.0 96.4 47.4

233.3 245.3 252.4 262.9 273.3 134.4

84.4 91.4 88.6 88.4 91.7 47.1

<Source> MOCIE

Status of gas station in Korea

The number of gas station reaches 11,580 and SK and GS-Caltex occupies 35% and 27% of market share, respectively.
(as of 2006. 6)
SK GSCaltex HyundaiOi lbank S-OiL No name Importer SK incheon Total

#station Ratio (%)

4,075

3,167

2,287

1,588

411

43

11,580

35

27

20

14

3.7

0.3

100

Petroleum price (Gasoline)

Gasoline price for end-user in Korea is higher than that of the others and 57% of its price is tax (UNIT :
1000/L)
Country Gasoline price Tax ratio Reference

1 2 3 4 5 6 7 8 9 10 11 12

Belgium Sweden U.K. Finland Denmark Portugal Germany France Italy Ireland Korea Austria Average

1.420 1.363 1.716 1.465 1.410 1.390 1.649 1.589 1.634 1.236 1.543 1.201 1.267

64.6 % 63.9 % 63.8 % 63.5 % 63.5 % 62.8% 62.1 % 61.5% 58.8% 57.9 % 57.3 % 57.7 % 51.8 %

06.03 06.03 06.05 06.03 06.03 06.03 06.05 06.05 06.05 06.03 06.07 06.03

<Source> Energy Dtente, June of 2006 * Average means simple average of OECD 20 countries (The exchange rate : 941.40 /$)

Petroleum price (Diesel)

Diesel price for end-user is higher and 47% of price is tax.
Country Diesel price Tax ratio

(UNIT : 1000/L)
Reference

1 2 3 4 5 6 7 8 9 10 11 12

U.K. Portugal Germany France Sweden Denmark Italy Ireland Belgium Austria Finland Korea Average

1.549 1.171 1.249 1.226 1.283 1.231 1.323 1.226 1.166 1.124 1.166 1.296 1.088

65.2 62.8 56.6 54.9 54.3 53.7 52.0 51.3 50.5 50.4 49.0 47.2 43.5%

06.05 06.03 06.05 06.05 06.05 06.03 06.05 06.03 06.03 06.03 06.03 06.07

<Source> Energy Dtente, June of 2006 * Average means simple average of OECD 20 countries (The exchange rate : 941.40 /$)

The trends of petroleum product price in Korea

Due to high crude oil price, petroleum product become more expensive
(UNIT : /L) YEAR 80 90 00 01 02 03 04 05 06.8 GASOLINE 581 384 1,248 1,280 1,269 1,295 1,365 1,432 1,545 KEROSENE 185 191 545 574 553 640 758 874 971 DIESEL 178 182 613 645 678 772 908 1,080 1,298 BC 144 95 304 320 334 363 393 449 549 <Source> MOCIE

Price system of Petroleum Product (as of 2006. 6)

Tax ratio by petroleum products
Tax Classification Ex factory (A) Traffic Educat ion
79

(UNIT : /L, m3)

Local drive
139

Supper

Total tax (B)

885 (57.3) 612 (47.2) 308 (42.7) 264 (27.5) 110.97 (17.2)

Margin (C)

Customer price (D=A+B+C)

Tr ans for tati on

Gasoline (Specific gravity, %) Diesel (Specific gravity, %) LPG (Specific gravity, %) Kerosene (Specific gravity, %) LNG (Specific gravity, %)

580 (37.6) 659 (50.9) 346 (48.0) 632 (65.9) 485.12 (75.2)

526

140

79 (5.1) 25 (1.9) 67 (9.3) 63 (6.5) 49.04 (7.6)

1,543

349

52

93

118

1,296

179

27

36

66

721

134

20.1

23

87

959

He ati ng

48.47

3.9

58.6

645.1

Education tax is imposed with 15% of transportation tax (special excise tax]
Local drive tax is imposed with 26%(26.5 %) of transportation tax (sale levy in kerosene) Taxation (in crude oil, about 3.8 won/L applied 1% ), import levy is included in ex factory, <Source> LPG is under LPG production MOCIE

The tax ratio in detail

Petroleum tax is composed of traffic tax, which is 44% as the largest part, special excise tax, education tax and drive tax, etc

Levy 5% S u ppe rtax 21%

Tari ff 1%

Traffi c tax 44%

Di rv e tax 10% E du c ati on tax 8% S pe c i al e x c i s e 11%

Price ratio of transportation fuels

Price ratio among major transportation fuels is, (if gasoline put on 100%) 100 : 47 : 26 (gasoline : diesel : LPG) in 2000 have changed into 100 : 84 : 47 In July of 2006. Especially diesel price surged

Classificat ion

July 2000 (reorganization of price) Price (/L) 1,279 Price ratio

4th week of July 2006 Price ( /L) 1,545.7

July 2007 (Price ratio) Price ( /L) 100 Price ratio

Price ratio

Gasoline

100

100

100

Diesel LPG (Butane)

604

47

1,299.0

84

75

85

337

26

720.84

47

60

50

The total related Petroleum (2005)

Selling price of refining section at refineries (the prime cost) : 50,272.9 billion won The total tax : 24,300.8 billion won Distribution margin : 3,737.4 billion won The total : 78,311.1 billion won
<Source> Korea Petroleum Association

* The yearly tax revenue related Petroleum product is 24 trillion won, similar to the budget of Defense expenditure.

4.

Quality Control of Petroleum Product

Status of Petroleum Product Inspection by year

YEAR

#STATIO N
10,549 10,533 10,635 11,272 11,074 11,713 11,903

#INSPECTI ON
57,769 65,356 65,570 73,042 81,308 84,506 41,772

Fail details Product/ Import step

7 12 9 8 2 1 3

Distributio n step
269 392 468 505 989 726 393

Total
276( 404 477 513 991 727 396

Fail ratio (%)

0.48 0.62 0.73 0.70 1.22 0.86 0.95

2000 2001 2002 2003 2004 2005 2006.6

Status of illegal petroleum product in Korea

Businessman using petroleum ( gas station, etc)
Illegal gasoline : the mixed with petrochemical product or other petrochemical product (solvent and toluene, etc) Illegal diesel : the mixed with petrochemical product or other petrochemical product ( product around diesel, etc) the material made of illegal diesel become various

Businessman using non-petroleum ( illegal sale on road )

Adulteration fuel (Gasoline) : disguised additives with the aim of the unfair profits

Businessman using waste oil

Illegal distillate fuel : distribute as illegal heating oil such as reused organic solvent, distillate fuel, etc

The off-spec. ratio (2005)

Kerosene (7.9%)

Others (2.2%)

Gasoline (20.9%)

Diesel (69.0%)

The off-spec. ratio of diesel is increasing every year.

The type of illegal petroleum product

Petroleum product +other product
Premium gasoline + Regular gasoline Gasoline + solvent, Kerosene, diesel Diesel + marine diesel diesel + kerosene, solvent, by-product oil

Petroleum product + petrochemical product

gasoline + solvent + BTX, alcohol gasoline + thinner gasoline + solvent +BTX+MTBE, Aniline

Diesel+ soybean oil +solvent Diesel+ Vegetable oil+ Solvent

Petrochemical product + other petrochemical product
Toluene + Methanol + [MTBE]

Petroleum or petrochemical product +Materials containing carbon and hydrogen

gasoline + [Solex]

Price comparison : Normal gasoline vs illegal gasoline

Honest Gasoline
Sale Saleprofit profit (80 (80won) won) Local Localdrive drivetax tax(128 (128won) won) Education Educationtax tax(80 (80won) won) Supertax Supertax(127 (127won) won) Sale profit Sale profit (396 (396won) won)
Fake gasolines margin is 5 times as many as that of honest gasoline

Adulteration Gasoline (Cenox, LP power)

Traffic Traffictax tax(535 (535won) won)

Supertax Supertax(54 (54won) won)

The Theprime primecost cost(523 (523won) won)

The Theprime primecost cost(540 (540won) won)

Sale price : 1,473 won

Sale price : 990 won

The margin as same as tax is divided into manufacturer, seller and end-user gain

Distribution system of illegal gasoline

Petroleum distillate businessman (5 refineries) Solvent manufacturer (11) Petroleum import businessman (2 importer) By-product distributor (4 Petrochemical companies)

Solvent agency (82)

Solvent shop (257)

Middleman

Thinner manufacturers
Small sellers on the road

Illegal gasoline maker

Illegal diesel maker

End user

Owners of passenger cars

Gas stations, etc

legal

illegal

The estimated omission tax revenue due to illegal gasoline

Usage volume of solvent VS the exposure number of illegal gasoline
YEAR Solvent consumption (1000B) Exposure number (cases) 97 785 98 578 99 735 00 736 01 794 02 1,271 03 2,703 04 3,894 05 4,380

85

154

238

147

161

275

1,497

4,010

6,620

If legal distribution volume of solvent be estimated as max. one million barrel (average 7, 260 thousand barrel from 1997 to 2001) The solvent volume for making illegal gasoline would be 3,380 thousand barrel. Approx. one trillion won (omission tax revenue) = 3,380 thousand barrel (illegal solvent volume) 2 874 won 158.984 (Barrelliter)

(mix ratio)

(gasoline tax)

[Ref.] Omission tax revenue in illegal diesel

Approx. 100 billion won (omission tax revenue) = 107,904 thousand barrel 1. 2% 518 won/L (diesel consumption) (fail ratio) (diesel tax) 158.984 (barrel liter)

Status of Biodiesel Distribution

Classification

BD 5

BD 20

System method Blending body Blending ratio Subject area

System permission Refinery/importer Max. 5 % (Notification 0.5%) Whole nation

System permission BD manufacturer 203% Whole nation Bus, truck and construction machines in place of business which possess Self maintenance facilities and ones own fueling station 2006.7 ~

Subject vehicle

All of diesel vehicles

Time

2006. 7 ~

BD 100 dont distribute due to raw material

Distribution of illegal petroleum product according to biodiesel spread

From July 1, BD 5 came into the whole country New kinds of illegal petroleum product became spread
Type 1 : soybean 5 ~ 30% + solvent 5 ~ 30% Type 2 : vegetable oil 10 ~ 20% + solvent 20 ~ 30%, etc soybean oil : raw bean oil diesel : 1,300 , soybean : 560 , BD 100 : 830 the exposure number reached 27 cases (as of july 1st)

Diesel [BD 5) VS illegal diesel (mixed with bean oil)

Illegal diesel A (solvent 20%+ soybean oil 10%)
8

Classification

Normal (BD 0.5)

Illegal diesel B (solvent 25%+ soybean oil 15%)

8

Sulfur (mg/kg) Kinematic viscosity(mm2/s) Density(kg/m3) FTIR absorption 1,748 cm-1

10

2.6 828 Specific peak at 1,745 cm-1

2.7 830 0.072

2.7 832 0.105

To prevent from increasing kinematic viscosity and density, blend ratio is two parts of solvent and one part of soybean oil

Development of Non-exposure vehicle for inspection

Using the vehicles with special testing analyzer, carry out on-site quality inspection after judging normal and abnormal products when fueling (patent submitting)
For gasoline and For diesel

Undercover Site Inspection & Testing Vehicle

Installation of equipment

5.

Future Trends of Petroleum Quality Spec.

Fundamental rule for set-up of future quality spec.

Improvement of domestic air pollution & Protection of public health Influence on automotive emission by fuel item State of Petroleum industry Contradiction effect between ability of petroleum refining facility and item Consideration of fuel demand supply and policy
Strengthening sulfur content in connection with strict spec. of automotive exhaust emission Strengthening spec. of toxic material Strengthening spec. of precursor making ozone Become to control NOx from PM and VOCs Strengthening item for fuel effective (CO2), etc

Subject Material for strengthening gasoline test item

ITEM Pollution material related emission HC, CO, NOx Fundamental Rule Allowed to automotive emission spec. Harmful, mileage Precursor making ozone Harmful, mileage Precursor making ozone Precursor making ozone

Sulfur

Benzene Olefin Aromatic RVP T90

Toxics, CO2 Olefin VOCs, Toxics Toxics, CO2 VOCs VOCs

Subject material for diesel item

ITEM

POLLUTION MATERIAL RELAATED EMISSION PM

FUNDAMENTAL RULE Allowed to automotive emission spec. Harmful Harmful, mileage NOx (considering new item) NOx (considering new item)

Sulfur

PAH Density Aromatic content Cetane index

PM, PAHs PM, NOx, CO2(small) NOx NOx, HC, CO, CO2, engine noise

Future gasoline Spec. (Draft)

Future quality spec. Draft For gasoline is as follow
ITEM Sulfur content (ppm) Benzene content (vol%) Olefin content (vol%) Aromatic content (vol%) Oxygen content (wt%) RVP (kPa, 37.8 ) Distillation T90 () CURRENT Max. 50 Max.1 18(21) 30(27) 1.0`~ 2.3(cold climate) 0.5 ~ 2.3(hot climate) 65(June ~ August) 175 FUTURE SPEC. (DRAFT) Max. 15 ~ 10 Max. 0.5 10(12 ~ 13) 25 ~ 22 (22 ~ 20) 60 ~ 50(June ~ August) 160

<Source> Korea Environment Institute, Study of environmental quality for future automotive fuel, 2005

Future diesel Spec. (Draft)

ITEM
Sulfur content (ppm) PAH content (wt%) Density@15 (kg/m3) Lubricity (HFRR) Aromatic content (vol%) Cetane index (value) Carbon Residue in 10% residual oil (wt%)

CURRENT Max. 30 Max. 11 815 ~ 845 Max. 460 Min. 45 Max. 0.15

FUTURE SPEC. [DRAFT]

Max. 10 Max. 5 820 ~ 840 (815 ~ 835) Max. 460 Max. 15 Min. 52

<Source> Korea Environment Institute, Study of environmental quality for future automotive fuel, 2005

6.

Others
TV advertisement for preventing of illegal gasoline

Thanks for your attention!