Pertamina disclosed last week that Saudi Aramco has withdrawn from discussions about a plan to jointly expand the Indonesian energy company’s refinery in Cilacap, Indonesia.
An Indonesian blending plant partly owned by Repsol will begin producing the companys lubricants by April. The Spanish company plans to expand the plant and to sell those products in regional and local markets, a company spokesman told Lube Report.
Indonesia has enough lubricant blending capacity to meet domestic demand, but because of high levels of imports it utilizes only half of that capacity, according to data released recently by the national Ministry of Industry.
Idemitsu Kosan completed the construction of its second Indonesia lubricant blending plant, nearly doubling its production capacity within the country, the company said in a press release this week.
An Indonesian mandate for lubricants to meet the countrys new national SNI standard took effect last month, but some companies may still be waiting for approvals, industry insiders told Lube Report.
Spains Repsol will begin blending lubricants in Southeast Asia through a joint venture with United Global Ltd., after acquiring a 40 percent stake in its Singapore-based lubricant manufacturer United Oil Co., the companies announced on Sept. 30.
Transformer oil supplier Michang Oil Ind. Co. of South Korea plans to enter the Indonesian market by forming a joint venture, PT Sari Michang Concord, and constructing a new plant.
Indonesias annual automotive lubricant demand reached about 360,000 metric tons in 2018, with the nations four-wheeler lubricant demand outpacing the growth in the two-wheeler segment, a senior official of Federal Karyatama said at a conference in Singapore last month.
Diesel engine oils of obsolete API CF-4 service category and below still dominate Asias major commercial vehicle markets - China, India and Indonesia - a Lubrizol marketing official said at the ICIS Base Oils & Lubricants conference in Singapore last week.
Vehicle sales across Southeast Asias big three markets - Malaysia, Indonesia and Thailand - are projected to cross 3.9 million units combined by 2025, according to an analysis by Frost & Sullivan. The study cited factors such as robust economic growth, high population and low car parc.