Vertex Energy Inc. announced plans to add 6,000 barrels per day of virgin API Group III base oil capacity to its existing operations in Mobile, Alabama. The company expects operations will start in 2029.
is moving forward with a project at its refinery in Mobile, Alabama, to produce crude-derived conventional API Group III base oils, expanding domestic supply for lubricant manufacturers and blenders. The company said it will use its existing hydrocracker and related processing infrastructure to add conventional Group III production, with
The project will produce 4 centiStoke, 6 cSt and 8 cSt material using crude-derived hydrocracked vacuum gas oil from the Mobile refinery. Vertex said it has completed preliminary design work and has procured a high-pressure hydrotreating unit for the project.
Once the new capacity comes online, it will complement the company’s existing production of rerefined Group III base oils. Vertex said the combined output is expected to make it the leading Group III producer in North America while allowing it to continue manufacturing transportation fuels alongside 4 cSt and 6 cSt rerefined Group III base oils.
The claim will be short lived, since other U.S.-based Group III producers include Chevron, which is constructing a Group III+ plant at its facility in Pascagoula. When finished it will have daily capacity of 25,000 bbl/d. ExxonMobil is also expanding Group III capacity at Baytown to 8,000 bbl/d.
“This project reflects a major milestone in our continued focus on improved profitability and margin stabilization,” Chief Executive Officer Mark Smith said. “We believe the planned investments, combined with our existing hydrocracker, give Vertex a compelling pathway to supply the conventional Group III market and support customers seeking reliable domestic supply.”