Malaysian energy giant Petronas is likely to restart its API Group III base oils unit at its Melaka refinery, an industry report said. A restart would put online a significant source of Group III back on the market after an extended disruption caused by hostilities in the Persian Gulf.
The Melaka plant was commissioned in 2008 with nameplate capacity of about 6,500 barrels per day, which equates to roughly 247,000-300,000 metric tons per year. The plant produces Petronas’ Etro+ Group III base oils.
Supply constraints have affected availability of Group III grades in several regions during 2026, with disruptions in the Middle East adding further pressure to a market already exposed to limited high-quality supply.
Lubes’n’Greases previously reported the Melaka unit closed for scheduled maintenance from June 1 until July 15. The latest update indicates that extended beyond that original maintenance period. The reason for the current outage and the timing of a restart have not been established.
Petronas is one of Asia’s major base oils producers, with its Malaysian operations supplying both regional and international markets.
Petronas did not respond to requests for comment by the time of publication.