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U.S. Gulf Coast refinery demand for hydrogen increasingly met by merchant suppliers
Petroleum refineries in the U.S. Gulf Coast increasingly rely on merchant suppliers, rather than their own production, to provide the hydrogen used to reduce the sulfur content of fuel. As global demand for distillate fuel oil has increased and sulfur content regulations have become more stringent, refineries have needed to use more hydrogen. Hydrogen demand is expected to continue to rise as International Maritime Organization regulations that limit the sulfur content in marine fuels take effect on January 1, 2020.

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