US issues condensate export rules – DISTILLED CONDENSATE EXPORTERS NEED NOT SEEK SPECIAL PERMIT TO EXPORT

The Commerce Department said today that distilled US condensates can be exported as freely as other refined products. The long-awaited public guidelines clear a path for rising US exports of ultralight supply from fields like the Eagle Ford in Texas.A series of “frequently asked questions” makes clear that distilled condensate exporters need not seek any special permit to send the product abroad. US crude exports are still subject to a 40-year old ban, except for shipments of Alaskan North Slope crude and most shipments to Canada.”Petroleum products are subject to few export restrictions,” the agency said.The agency emphasized that companies may legally export output of ultralight crude oil distilled in certain field equipment into chemically distinct products.BIS would consider whether the output of the distillation equipment had useful purposes as a petroleum product, such as for petrochemicals or as a gasoline blendstock, and whether the distillation process produced consistent, separate cuts from the condensate.”In reviewing commodity classification applications, BIS will look at the particular circumstances of each application to determine whether the output of a process can be considered a petroleum product under the current regulatory definition,” the agency said.

via News Story – Argus Media.

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