Marathon Petroleum Co. yesterday began notifying customers of its plans to exit the base oil, wax and aromatic extracts markets, and to eventually shut down its base oil plant in Catlettsburg, Ky., several sources told Lube Report. The base oil plant has 6,800 barrels per day of API Group I capacity.
Linda Casey, communications manager for Marathon Petroleum, on April 23 confirmed the companys plans. Finished products specifications and commodity markets have changed significantly over the past few years, Casey told Lube Report. It has become increasingly difficult to compete and address these changes without additional large capital investments. As a result, prior to year-end, Marathon will discontinue the production of all base oils, slack waxes and extracts and will permanently shutdown the Catlettsburg, Ky., lube plant. Until that time, we will work to fill orders for lube plant products.