China National Offshore Oil Co. recently signed a contract to license Chevron Lummus Globals technology for a 400,000 metric tons per year API Group II and III base oil plant that is expected to start up around 2016 in Taizhou, China.
In a statement, Chevron Lummus Global said it will provide the process design, catalysts and technical services for the Taizhou plant, which will use CLGs Isocracking, Isodewaxing and Isofinishing technologies to produce Group II and III base oils.
CNOOC now has 850,000 t/y of total capacity at a naphthenic plant in Binzhou and a paraffinic plant in Huizhou that also licenses CLG’s technology. Of the total capacity, 450,000 t/y is naphthenic and 400,000 t/y is Group II/III.
According to a Sinopec Lubricant Co. officials presentation at the ICIS Asian Base Oils & Lubricants Conference in Singapore in June 2012, total base oil consumption in China in 2011 was 6.91 million tons. Chinas three giant, government-controlled major oil companies, PetroChina, Sinopec and CNOOC, together supplied 2.75 million tons of base oil; 2.12 million tons was imported; and other, generally low-quality refiners, supplied the remaining 2.04 million tons.