Valero, Nynas Go Their Own Ways


Nynas agreement to purchase and market the naphthenic production at Valeros base oil plant in Three Rivers, Texas, ended last year, a Nynas official confirmed to Lube Report, and Valero is now marketing the pale oil on its own.

Valeros Three Rivers, Texas, refinery has 2,400 barrels per day naphthenic base oil capacity. AB Nynas Petroleum announced in May 2003 it had entered a long-term agreement to purchase all of the naphthenic production at Valeros Three Rivers base oil plant. As part of the deal, Valero agreed to invest $10 million to upgrade and expand the plant.

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That agreement with Valero ended last year, Nynas USA General Manager Endre Kallay told Lube Report. Nynas is currently continuing its global expansion, and the goal is to sell about 1.1 million tons of naphthenic specialty products in 2016, Kallay said. North America is the biggest market in the world, and Nynas intends to move part of the 1.1 million tons to the region by streamlining the logistics and keep our products at a competitive level.

He noted the companys global capacity expansion is possible through the added volumes coming from the takeover of the Harburg refinery in Hamburg, Germany, and the increased capacity at the Nynshamn refinery in Sweden. The Isla refinery on Curacao continues to contribute significantly to Nynas overall manufacturing capacity as well, Kallay said.

The Three Rivers plant will continue to produce naphthenic oil, Valero spokesman Bill Day told Lube Report. At present, Valero is marketing the naphthenic oil ourselves.

Neste Oil and Petroleos de Venezuela S.A. (PdVSA) are co-owners of Nynas. In addition to its 7,800 b/d naphthenic plant in Nynashamn, Sweden, Nynas has a long-term marketing agreement to sell naphthenic base oils produced at the Rafineria Islan plant operated by PdVSA in Emmastad, Netherlands Antilles. That plant has 3,700 b/d naphthenic capacity.

Nynas now also operates the base oil plant and associated production units at the former Shell refinery in Harburg, Germany. The takeover of the base oil plant near Hamburg is the first step towards establishing a new site for Nynas with up to 350,000 metric tons per year specialty oils production capacity. Nynas said it will represent a 40 percent increase in the companys naphthenic specialty oil supply capability.

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