Chevron (NYSE:CVX), Phillips 66 (NYSE:PSX) and Shell (NYSE:SHEL) are among several oil refiners seeking at least a one-year delay until May 2024 for a fuel specification change in eight states intended to support continued year-round sales of E15 ethanol gasoline, Argus reported Friday.
The request came in an industry organized meeting last week with staff from the Biden administration and the U.S. Environmental Protection Agency, according to the report, which cited public documents.
If the EPA soon approves a switch to lower-volatility gasoline blends in the eight Midwest states, refiners and fuel distributors say they need more than a few months to make the needed changes.
Refiners in the U.S. mid-continent and the U.S. Gulf Coast would need to make “infrastructure and operational changes” to be able to supply the new gasoline blends, according to an industry petition shared at the meeting.
Exxon Mobil (XOM), Magellan Midstream Partners (MMP) and Valero (VLO) attended a separate meeting at the White House a month ago that also requested a one-year delay.
Phillips 66 (PSX) offers a high yield, strong and rising free cash flow used to support high dividend growth and a balance sheet that supports aggressive buybacks, Leo Nelissen writes in an analysis posted recently on Seeking Alpha.