Vertex to Market Adnoc’s Group III in U.S.


Vertex Energy said yesterday that it will serve as marketer in the United States of API Group III base oils from Abu Dhabi National Oil Co.s new plant in the United Arab Emirates. Vertex is agent for Netherlands-based Penthol C.V., which is Adnocs distributor, and will export the oils to the U.S.

According to Vertexs announcement, the first cargo of 75,000 barrels of base oil arrived in Braithwaite, Louisiana, at the end of July.

Vertex said it has taken on responsibilities – in cooperation with Penthols U.S. subsidiary Penthol LLC – for marketing, sales and logistical duties in North America. The two companies will offer Group III base oils in 4 centiStoke, 6 cSt and 8 cSt viscosities under the Vertex-Penthol name.

Takreer, the refining arm of Adnoc, started commercial production in April at its 10,000 barrel per day plant in Ruwais, U.A.E. That project was one of several in recent years that helped turn the Middle East has become a hub for Group II and III stocks. The region produces significantly more of those grades than it consumes, so marketers such as Adnoc, which is new to the base oil business, are looking for customers in other regions.

Vertex-Penthol have arranged logistic infrastructure, utilizing storage tanks, new rail cars, trucks and barges for the delivery of base oil to customers identified by Vertex throughout the United States, Penthol LLC Chairman Faruk Erkoc said. Vertex has the market knowledge and depth of experience that gives us confidence that our investment in the United States will provide early and ongoing returns.

In 2014, Houston-based Vertex acquired Heartland Group Holdings – owner of a used oil collection network and a 1,500 barrels per day Group II rerefinery in Columbus, Ohio.

In January, Vertex Energy announced plans to launch a finished lubricants product line. In February, the company announced that Clean Harbors acquired Vertexs rerefinery in Fallon, Nevada, for $35 million.

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