Cleaner Fuel and Vehicles in Mongolia
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1 Mongolia Cleaner Fuel and Vehicles in Mongolia Prof. ADIYASUREN Tsokhio, CCAC National Focal Point of Mongolia Meeting on Cleaner Fuel and Vehicles in Asia: Implementing the Global Sulfur Strategy, 20 March 2018, Bangkok, Thailand
2 Where Are the Mongols? The Mongolian terrain is landlocked mountainous and isolated from the sea at minimum 1600 km distance from Pacific Ocean others even greater. Mongolia Lies in Central Northeast Asia between Russian Federation and Republic of China
3 MONGOLIA: Brief Introduction Population: 3.2 million Capital: Ulaanbaatar About 1.4 million people live in the capital city Total land area: 1,556,000km 2 Namibia Population density: 2 persons/km 2 3
4 Mongolia is the most arid country in North- East Asia Aridity increases from north ( 400mm rainfall) to south ( 50mm) Economy: Animal Husbandry + Mining Industry
5 Transport situation in Mongolia We have considered vehicles used in Mongolia and Ulaanbaatar. One of every three people living in Ulaanbaatar owns vehicle and therefore a traffic jam and toxic emissions resulting from the vehicles have increased significantly in the capital city.
6 Number of vehicles Number of vehicles by engine capacity Out of all imported vehicles only 4-14% are new and remaining 86-96% are secondhand vehicles. The main vehicle exporters are Japan, South Korea and Hong Kong and they provide cheaper secondhand vehicles. In 2016, 70.8% of all vehicles had engine capacity of 1500cm 3 and cm New Secondhand 1500cm cm cm cm3 4501cm3
7 Number of automobiles Number of Number of automobiles (left) and transportations (right) 900, , , , , , , , , ,019 80,000 70,000 60,000 50,000 51,238 54,341 64,712 69, ,000 40, ,000 30, ,000 20, ,000 10, Year Year Тээврийн хэрэгсэл: Чиргүүл + Механизм + Мотоцикл
8 Number of Automobiles Number of automobiles by type Car Truck Autobus Special Tank truck Locomotive
9 Number of vehicles by engine type Hybrid 17.3% Electric 0.02% Gas 2.1% Gasoline 56.3% Diesel 24.3%
10 Plans & Roadmap for fuel quality and vehicle emission standards Import better quality fuel Improve vehicle emission standard Ensure implementation of state vehicle inspection program Improve public awareness (air pollution, fuel quality, etc.) Install Diesel Particulate Filter (DPF) in public transportations Improve air quality monitoring network related to vehicle emission Establish air quality monitoring centers for vehicle emission
11 Fuel quality and vehicle emission standards of Mongolia Vehicle emission standard Fuel type Gasoline Diesel Standard name: MNS 5013:2009 Petrol engine vehicle. Maximum acceptable level and measuring method of exhaust emission Approved date: Sep 30 th of 2009 Sep 30 th of 2009 Effective date: Nov 1 st of 2009 Nov 1 st of 2009 Specifications: Carbon monoxide (CO) 0.3~2.0% Hydrocarbon (HC) 250~800ppm Fuel quality standard Fuel type Gasoline Diesel Standard name: MNS 0217:2017 Automotive fuels. Unleaded petrol. Technical requirements MNS 5014:2009 Diesel engine vehicle. Maximum acceptable level and measuring method of exhaust emission Dust 35~40% Approved date: Apr 06 th of 2017 Apr 06 th of 2017 Effective date: May 16 th of 2017 Oct 1 st of 2018 Specifications: Sulfur amount: Euro 5 (K5) fuel less than 10mg/kg MNS 0216:2017 Diesel fuel Euro. Technical requirements Sulfur amount: Euro 5 (K5) fuel less than 10mg/kg
12 Comparison of gasoline quality specifications Indicators MONGOLIA RUSSIA CHINA MNS 0217:2017 ГОСТ GB АИ-80 АИ-92 MGL-93 АИ-95 АИ-98 АИ-80 АИ-92 АИ-95 АИ-98 С-90/89 С-93/92 С-97/95 Ch Octane rating - by analytical method /89* 93/92 97/ by engine method /84 88/87 -/ Hydrocarbon resin content, mg/dm Induction phase (Oxidation stability), min Sulfur content in ecological class, mg/kg: K K K Benzene content (Volume %) K3, K4, K5 6. Hydrocarbons content (Volume %) in K3, K4, K5 ecological classes K2 5, K3, K4, K Olefin ,0 30 (Ch-lll), 28 (Ch-IV), 24 (Ch-V class), - Aromatic 35.0 (42.0 K3 ecological class) KЗ-42, K4,K ,0 7. Oxygen compounds content (Volume %) - Methanol 1,0 1,0 0,3 - Ethanol 5,0 5,0 - Isopropyl alcohol 10,0 10,0 - Isobutyl alcohol 7,0 7,0 - Tert-butyl alcohol 10,0 10,0 - Ethers (С 5 and above) 15,0 15,0 - Other oxygen compounds (boiling point < 210 С) 10,0 10,0 8. Density at 15 о С, kg/m3 725,0-780,0 725,0-780,0 720,0-775,0 (20 С) 9. Manganese content, mg/dm (Ch-lll), 8 (Ch-IV), 2 (Ch-V) 10. Iron content, mg/dm ,01 (g/l) 11. N-Methylaniline content (Volume %) экологийн in K3, K4 ecological classes 1,0 1,0 -
13 Indicators MONGOLIA RUSSIA CHINA MNS 0216:2017 ГОСТ GB Type Summer Winter Arctic Summer, fall-spring fuel Winter or arctic A В С D Е F Max. temperature for filtering, С Cetane number 51 51,0 49,0 48,0 47, Cetane index 46 46,0 43, Density at 15 С, kg/m ,0-845, Turbidity temperature, о С Hydrocarbon resin content, mg/dm Comparison of diesel fuel quality specifications Polycyclic aromatic hydrocarbons content (Weight %) Sulfur content, mg/kg Euro З 350,0 350,0 350,0 350,0 Euro 4 50,0 50,0 50,0 50 Euro 5 10,0 10,0 10,0 10 Ignition temperature, о С Water content, mg/kg Total pollutant content, mg/kg Kinematic viscosity at 40 о С, mm 2 /s Compounds: 10% volume distilation temperature С С С 65%volume distilation temperature % volume distilation temperature % volume distilation temperature 350 С 90% volume distilation temperature % volume distilation temperature Fatty acid methyl ether content (Vol. %) Freezing temperature V ,
14 Import of gasoline (left) and diesel fuel (right), amount (kilotonne) 2008 amount (kilotonne) 2010 amount (kilotonne) 2013 amount (kilotonne) 2005 amount (kilotonne) 2008 amount (kilotonne) 2010 amount (kilotonne) 2013 amount (kilotonne) 2015 amount (kilotonne) 2016 amount (kilotonne)
15 Import of Petroleum products 2% 1% 0.50% 2% 14% 4% 25% 55% 97% Russia PR China PR Korea Other Diesel Gasoline (octane number > 90) Gasoline (octane number < 90) Aviation fuel Other (oil, mazut, gas, bitumen, etc.) Mongolia imports petroleum products 100% from abroad. In 2016, Mongolia imported total of kiloton gasoline and kiloton diesel fuel. In 2017, Mongolia imported petroleum products - 97% from Russia and 2% from China.
16 Fuel quality situation and future plans Establish the regulatory council with multilateral engagement who is responsible for fuel quality situation Improve custom inspection Develop Action program to improve fuel quality Vehicle emission standard was approved in 2009 and fuel quality standard was approved in Therefore the vehicle emission standard needed to be updated. Cost-benefit analysis
17 Mongolia Sustainable Development Vision 2030 Resolution No. 19 of Parliament, 2016 Industry sector: Objective Phase I Meet up to 20 percent of the national demand for main fuels from domestic production meeting the Euro-4 standards Phase II Meet up to 70 percent of the national demand for main fuels from domestic production meeting the Euro-5 standards Phase III Meet up to 100 percent of the national demand for main fuels from domestic production meeting the Euro-5 standards
18 Euro Standard Even tough Mongolia approved Euro 5 fuel quality standard in 2017, because of the price increase we are still using fuel which has quality equal to Euro 2 standard and fake or blend fuel. Solvents and kerosene are import tax free blends, which are added to gasoline and diesel to make fake fuel. Therefore we can not control fake fuel because of increasing import of solvents and kerosene.
19 Fuel Here we have compared the quality of fuel being used in Mongolia to other countries. Mongolia is using the lowest quality fuel that has sulfur content above 2000 ppm. Russia, the main supplier of Mongolia, offers Euro 2 (sulfur content ppm) more than Euro 5.
20 Sulfur content (diesel, gasoline, kerosene)
21 Fake Petroleum Products Harmful Effect of Fake Petroleum Products What is the Fake Petroleum Products'? Substance which is made in the following ways and for being used as vehicle fuels * Quotation : Article 2, Section 10 of Petroleum and Alternative Fuel Business Act Petroleum product + Petroleum products with different grades Premium gasoline + Regular gasoline Gasoline + Solvent, Kerosene or Diesel Diesel for vehicle + Marine diesel Diesel + Kerosene, Solvent or By-product fuel Petroleum product + Petrochemical product Gasoline + Solvent + BTX, Alcohol Gasoline + Paint thinner Gasoline + Solvent + BTX + MTBE, Aniline Petrochemical + Petrochemicals with different kinds Toluene + metsanol + (MTBE) Petroleum product or Petrochemicals + Materials containing carbon and hydrogen Gasoline + (Solex) Kerosene + Dye
22 1. Fake Petroleum Products Cause 2 Ease of producting Easily product without any professional knowledge or techniques Fake Gasoline: Solvent with Toluene and Methanol Fake Diesel: Diesel + Kerosene, Kerosene + Dye No need for special equipment (only need simple blenders) Distributed without packaging Difficult to identify if it is qualified by consumers
23 1. Fake Petroleum Products Cause 1 Pricing Structure of Petroleum Products W 1,408/L ($ 1.27/L) Tug 1,730/L ($ 0.72/L) W 1,208/L ($ 1.08/L) Tug 2,010/L ($ 0.83L)
24 Price Quality of Mongolian fuel depends on the price of petroleum products. Fuel price in some countries: South Korea: gasoline $1,27/L diesel fuel $1,08/L China: gasoline $1-1,1/L diesel fuel $1/L Mongolia: gasoline $0,7/L diesel fuel $0,8/L The price of goods and services is fully dependent on fuel price in Mongolia. A slight increase in fuel price creates public frustration. That s why the Mongolian government tries to keep the price constant.
25 Main supporters of Euro 4 and Euro 6 equivalent vehicle emission standards and fuel quality Mongolian government Ministry of Environment and Tourism Ministry of Road, Transport and Development Ministry of Mining and Heavy Industry Mongolian National Chamber of Commerce and Industry Mongolia approved vehicle emission standard in 2009 and fuel quality standard in Legal environment relating to vehicle and fuel is sufficient. Due to insufficient implementation we need to ensure improvement.
26 Mongolian laws and policies relating to vehicle and fuel Law on Environmental Protection, 1995 Law on Air, 1995 Law on Transportation, 1999 Law on Taxation of auto vehicles and self-moving vehicles, 1992 Law on Excise tax, 2006 Law on Air pollution payment, 2010
27 Law on Transportation, 1999 Chapter 4: Technical inspection, registration and standardization of automobiles Article Enforce technical inspection throughout the year and issue a certification if the vehicle meets the acceptable level of adverse health and environmental impacts and its transportation and technical requirements.
28 Law on Payment for air pollution, 2010 Article 4. The payer of air pollution and their registration Article 7. Amount of the payment 7.3. Amount of the payment for CO 2 that emitted from auto vehicles and selfmoving vehicles varies depending on classification of the vehicle in following manner: Classification of auto vehicle and self-moving vehicle CO 2 emission (g/km) Payment per year (tugrik) А Б В Г Д Е
29 Main challenges Political instability Price of Petroleum products o Euro 2 fuel is cheaper than Euro 5 fuel. o Fuel price in Mongolian market is lower than in another countries. o Mongolia is economically developing country. Fake petroleum o Kerosene and solvents are import tax free. o Import amount of these blends is increasing. o Illegal production and trade of fake fuel in Mongolian market. Fuel suppliers of Mongolia: Russia switched to Euro 5 standard in But continuously exporting low quality fuel to some developing countries.
30 Main challenge in adopting a roadmap 2017 Established the fuel quality standards: 1. MNS 0216:2017 Diesel fuel Euro. Technical requirements 2. MNS 0217:2017 Automotive fuels. Unleaded petrol. Technical requirements To improve the tax system for other solvents and kerosene 2. To improve the people awareness on air pollution and fuel quality Blend control 1. Establish laboratories to inspect fake and low quality fuel 2. To expose illegal companies and to forbid their activities 3. To provide the permission for production of petroleum product 4. Update the vehicle emission standard
31 Thank you for your attention
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