Ethanol Replaces MTBE in California

January 15, 2003 [] ChevronTexaco will switch from blending MTBE to ethanol in the southern California market between January and May. By joining ConocoPhillips, BP, Shell and ExxonMobil, Chevron’s announcement means that more than 80 percent of California gasoline will soon be blended with ethanol. ChevronTexaco, which controls 18 percent of the California retail gasoline market, has begun the switch to ethanol and will complete the switch for southern California in May. The company will stop using MTBE statewide by the end of the year in compliance with the state’s MTBE ban. As of Chevron’s announcement, Valero Corporation, a major MTBE producer, is the largest California gasoline marketer with no plans to end MTBE use prior to the state’s mandatory deadline at the end of 2003.
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