The six-year-old joint venture, in which Neste holds a 45 percent share, with Bapco and Bahrains Overseas Oil & Gas Holding Co. with the remaining 55 percent, is unaffected by the new deal.

Neste announced the new agreement on Nov. 9 after the original agreement expired in October. The joint venture plant is located in Sitra on the east coast of the island of Bahrain. From Jan. 1, Bapco launched its own base oils under the BAPbase brand. That mirrors a similar strategy of direct marketing adopted by other regional refiners, including Abu Dhabis Adnoc and recently Saudi Arabias Aramco. Bapcos refinery has capacity to make 400,000 metric tons per year of Group III base stocks with viscosities ranging from 4 centiStokes to 8cSt.

Virpi Amoedo, Nestes specialty products director, told LubesnGreases that the Helsinki-listed company expects to absorb a significant portion of Bapcos production. Neste will continue to sell the majority share of the output – Nestes 45 percent of the joint venture plus part of Bapcos share – and 100 percent of the Porvoo output. Nestes refinery in Porvoo, Finland, produces 250,000 t/y of Group III marketed under the Nexbase brand and 70,000 t/y of process oils.

Neste predicts that it will supply more than 500,000 t/y to global markets next year which could see it tapping at least an additional 70,000 t/y of Bapcos output, LubesnGreases estimates. Neste declined to comment on the estimate.

Sasol Abandons Plans for U.S. GTL Plants

One of the worlds largest synthetic fuels producers, Sasol, will shelve all of its plans to build new gas-to-liquids (GTL) plants, including a $15 billion facility at its Lake Charles, Louisiana, complex, citing market volatility. The plant would have been the companys largest overseas investment and would have included a base oil plant.

While our current GTL assets are generating good returns and cash flows, the value proposition for Sasol to build new GTL projects is uneconomic against a volatile external environment and structural shift to a low oil price environment, said Sasol President and CEO Stephen Cornell in a statement.

Royal Dutch Shell also abandoned its own GTL plant in the state in 2013 after proposed costs spiraled up to $20 billion, having announced construction plans only 10 weeks before.

Saudi Arabia to Build Integrated Oil to Chemicals Plant

Saudi Aramco and Saudi Basic Chemicals have signed a memorandum of understanding to build a $20 billion crude oil-to-chemicals plant in the kingdom. The final investment decision for the project is expected in 2019. The two partners claim the plant will will be the largest such facility in the world with capacity to process 400,000 barrels per day and produce 9 million metric tons of chemicals and base oils per year when it comes on stream in 2025.

Fuchs Acquires Lub Asyst

Fuchs, the worlds largest independent lubricant company, bought lubricants distributor Lub Asyst, the German companys longtime trading partner in Romania. The deal includes Lub Asysts customer base and workforce and strengthens Fuchs position in Central and Eastern Europe, Fuchs said in a statement.

Millers Opens Baku Blending Plant

U.K. lubricants manufacturer Millers Oils has established a premium motor oil blending plant in the Azeri capital Baku in partnership with the Azerbaijan National Academy of Sciences. The plant is located at the academys High-Tech Park, which already exports lubricants to neighboring Turkey and Georgia.

ExxonMobil Further Integrates Downstream Business

ExxonMobil confirmed it would further integrate its downstream refining and fuels and lubricants units to improve streamlining and increase profits. The company, which retails the Mobil 1 automotive lube brand, operates 22 refineries worldwide that process around 5 million barrels of oil per day.

Emery Oleochemicals Raises Biolube Product Prices

The biolubricants division unit of specialty chemicals company Emery Oleochemicals increased prices in the Americas and Europe of pelargonic and azelaic acids and blends. The move was driven by inflation on raw materials, packaging and logistics, Emery said in a statement.

Azelaic acid is a thickening agent and pelargonic acid is used in bio-lubricant synthesis.