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For this study, the European region is defined as all EU countries plus European Free Trade Association (EFTA) countries Iceland, Liechtenstein, Norway and Switzerland as well as southeastern European countries eventually planning to join the EU. Turkey has been included in the European region as well.

The European Union (EU) Member States (MS) have successfully implemented Euro 5 and Euro V vehicle emission standards as well as corresponding legislative regulations for fuel quality; they have also achieved full penetration of 10 ppm sulfur fuels. Other countries planning to join the EU are also progressing toward its standards. Growing middle distillate demand and upcoming requirements to reduce sulfur content in marine fuels will place additional requirements on the region’s refineries and push its gasoline-to-distillate production ratio to the limits. In parallel, the EU Renewable Energy Directive (RED) and individual country biofuels programs will dictate integration of biofuels and alternative fuels into the transportation fuel pool.

Going forward, European refiners will need to continue to address the gasoline and middle distillate product imbalance and more stringent environmental regulations ...

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