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Chevron Delays Introduction of Cleaner Fuel : Energy: The decision is due in part to the shortage of a critical ingredient.

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TIMES STAFF WRITER

Faced with a shortage of a key ingredient and instability in energy markets, Chevron Corp. confirmed that it has postponed the introduction of a cleaner-burning gasoline in three metropolitan areas.

Chevron’s lower-emission gasoline--one of many such highly touted formulas recently introduced by oil companies--was supposed to have been rolled out late this summer in Houston, Baltimore and Washington before the company changed its plans a few weeks ago. Chevron Supreme Unleaded has been available in Southern California since June.

“We are simply deferring” the introduction, a Chevron spokeswoman said. “We are not ending our plans.”

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Chevron made the decision after it faced a shortage of a key chemical--methyl tertiary butyl ether, or MTBE--for the lower-emission fuel. The shortage stems in part from an accident at an Arco Chemical plant in Texas that accounted for about 30% of MTBE production in the United States.

The switch to the cleaner-burning gasoline would also limit the San Francisco-based company’s flexibility in producing and distributing other types of gasoline and products, the company said. With U.S. refineries already running near capacity, the company said it did not want to hamper its ability to respond to any changes in demand triggered by the turmoil in the Mideast.

“We want to make sure we can produce as much gasoline and other products as we can,” the Chevron spokeswoman said. The company said it will continue the roll out of Chevron Supreme Unleaded when crude oil markets stabilize.

Chevron is one of several oil firms that have introduced reduced-emission gasolines within the past year. Companies say that sales of the fuels are on target and don’t seem to have been affected significantly by the current Mideast crisis and concomitant run-up in gas prices.

One of the first companies to offer a cleaner burning fuel, Los Angeles-based Arco, said demand for its EC-1 has continued to increase since it introduced the fuel in September, 1989. The company says its production of EC-1 has not been affected by the shortage of MTBE.

Shell Oil Co. says its production of SU 2000E, which was introduced in 10 metropolitan areas this spring, remains unchanged. “We are having no difficulties in supplying our customers with that product at this particular time,” said a spokesman.

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