Boosted by larger volumes for Ergon and Calumet, base oil capacity in the United States totaled 214,500 barrels per day on Jan. 1, up 6 percent from the start of 2009, according to the 2010 Lubricating Oil and Wax Capacities Report by the National Petrochemical and Refiners Association.
The publication summarizes locations, capacities, refinery configurations and ownership for 19 U.S. base oil and wax plants, five from Canada and two in Latin America. Four rerefineries are also listed in the statistical report.
U.S. API Group I capacity stood at 63,600 b/d, compared to 62,700 b/d in 2009, according to NPRAs report. Group II and III capacity reached 105,800 b/d, up from 102,300 in 2009. Naphthenics rose to 45,100 b/d, from 37,400 b/d in 2009.
The report provides a look forward at upcoming capacity changes and a recap of the base oil scene.
Ergons expansion at its Vicksburg, Miss., naphthenics plant increased total capacity to 19,000 b/d. Completed in stages, the project raised the plants capacity from 11,300 b/d at the start of 2009 to about 16,500 b/d in the summer, and then to 19,000 b/d in 2009s fourth quarter.
The 2010 report also reflects Calumet Specialty Products Shreveport, La., refinery expansion, which started up in May 2008 but was not on the 2009 report. That expansion added a total of 4,800 b/d, the new report shows.
One ownership change noted in the 2010 report involved Sunocos former 9,500 b/d Group I plant in Tulsa, Okla., now owned by Holly Corp., which purchased the refinery and base oil plant for $65 million in April 2009.
Another upcoming ownership change could involve Valero Energy. In February, the refiner confirmed it was considering selling its Paulsboro, N.J., refinery, which has a base oil plant with 11,000 b/d Group I capacity and 500 b/d of Group II capacity. We have talked to some interested companies and accepted some bids, but we have no further updates at this time, Valero spokesman Bill Day told Lube Report on Monday.
The next two years will bring previously announced Group I base oil plant closures by Shell and Imperial Oil.
In January, Shell said it will convert its 130,000 barrels per day Montreal East refinery to a terminal to receive gasoline, diesel and aviation fuels, to be distributed via its nearby Montreal terminal. The refinery includes a base oil plant with 2,700 barrels per day Group I capacity.
The lubricants plant shutdown will start in June, Shell Canada Spokesman Larry Lalonde told Lube Report on Monday. Shutdown of the refinerys major units is scheduled to begin later in the fall, likely starting in September, Lalonde added.
In February, Imperial Oil announced it will stop base oil production at its Sarnia, Ontario, refinery in mid 2011 to focus on fuels, which the business views as more profitable. The plant has 2,800 barrels per day of API Group I and 3,800 b/d of Group II base oil capacity. It also produces process oils and wax.
The largest addition on the horizon remains Chevrons planned 25,000 b/d Group II base oil facility, with estimated completion in 2013, at its Pascagoula, Miss., refinery. Although Chevron recently outlined plans to eliminate 2,000 jobs from its downstream business, it emphasized the Pascagoula base oil project remained in its plans.
The North American rerefining market will get another player down the road, as Heritage-Crystal Clean recently outlined plans for a rerefinery in Indiana that would begin production in 2012 of about 2,000 barrels per day of Group II base oil. The companys management team includes former Safety-Kleen executives and engineers with experience in designing and building rerefineries.
The 13-page 2010 Lubricating Oil and Wax Capacities Report is free to NPRA member companies, and costs $35 for nonmembers. For ordering information, visit http://www.npra.org/publications/statistics/.