Pinnacle Oil last week announced the formation of Golden Triangle Lubricant Services, a subsidiary based in Nederland, Texas, at a former Sun Oil blending plant. Golden Triangle will focus on marine lubricants, a market that is estimated to grow as much as 4 percent annually.
Pinnacle, an independent blender based in Indianapolis, Ind., set up the new company at the former Sun Oil lubricant blending plant at the Sunoco Logistics facility in Nederland, under a long-term lease from Sunoco. Harji Gill, Pinnacle vice president, is president and chief operating officer of Golden Triangle.
Golden Triangles main focus will be marine lubricants, a completely new line for Pinnacle, Gill said.
According to Fuel & Marine Marketing, a Chevron Co., the deep-sea marine lubricant market, 600 million gallons worldwide, is dominated by five major oil companies. Shell, Chevron, Total, ExxonMobil and BP together have about 80 percent of the market. But unlike the forecast for most other lubricant lines, demand for marine lubes has been vibrant over the past decade and is expected to grow 2 to 4 percent annually in coming years.
The Gulf Coast has been the prime target expansion area for our company, and the Nederland facility offers us a clear competitive advantage in this market, said Kim Morris, Pinnacle president.
Were now modernizing the facility, putting in dedicated lines, Gill told Lube Report. The facility is accessible by ship, barge, rail and truck. Tanks range in size from 20,000 gallon additive tanks to 32,000 barrel base oil tanks. The plant will initially concentrate on terminal and blending services, but will also provide drumming and laboratory services to its customers.
Golden Triangle has commitments from two significant customers for major projects, and the facility is capable of handling significant additional volumes, Gill said. It is centrally located to service the key ports of Houston and New Orleans with marine lubricants. Our goal is to be a super hub for marine lubricants.