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When it comes to enforcing minimum quality standards, the Middle East is a disparate region, but one industry observer believes its time to introduce a regional minimum lubricant quality benchmark.

Speaking at the 14th ICIS Middle Eastern Base Oils and Lubricants conference, Mohamed Jarjarah, executive vice president of Advanced International Lubricants, said that although most countries comply with API grades, a new standard is required that provides a broader assessment of quality and one which is not just reliant on product performance.

Many Middle Eastern countries have their own standards bodies, and some, like those in Saudi Arabia and the United Arab Emirates, have gained prominence for their commitment to improving finished lubricant quality. But according to Jarjarah, standards have stayed the same for the past 25 years.

The Gulf Cooperation Council has attempted harmonization by forming the Gulf Standards Organization. However, detractors say it lacks the resources to enforce compliance. Still, Jarjarah said future harmonized quality assessments could be broadened to include company-wide quality audits and plants should have ISO certification or their own internal procedures. We have to make sure we have standard products [by] getting additives from well-known companies, for example, he said.

Environmental, health, safety, quality control and transport standards must also be factored into a future harmonized standard. All of these segments must be defined and every step identified, he said.

Such a level of standardization is likely to disrupt the market if fully implemented. Jarjarah was clear that the objective is to force a degree of rationalization. Some of the blending companies will not be able to afford [the costs of meeting a comprehensive standard] and they will close. Some lubricants will also not be certified, and overall blending capacity will be reduced, which may not be a bad thing. The GCC hosts 59 blending plants with a further 13 in Egypt and four in Jordan, he said.

With a total combined blending capacity of 3.4 million metric tons, supply of around 1.4 million tons far outstrips demand. Insisting on regional standardization will mean more consistent product quality and fewer complaints, Jarjarah argued. That is good news for consumers as it reduces uncertainty and will hopefully generate more value for users. Taken together, these steps build trust with customers, and consistent quality will help the market grow faster, he added.

For producers, Jarjarah believed standardization would enhance their reputation and profits, as well as qualify manufacturers for local and international bidding. But arguments in favor of standardization may flounder without proper levels of enforcement.

Jarjarah claimed there are several strands to the solution. Foremost, a countrys standardization body should lead enforcement efforts. Alternatively, lubricant companies could collectively petition governments to implement agreed standardization levels. Given the health and safety aspects, enforcement could also fall to civil defense departments. External testing and certification bodies could also play a role.

According to Jarjarah, a holistic approach to standardization is not without its challenges. Ownership
of the project, defining standardization conditions and coordination among various parties are a few issues that could yet trip up the march to quality.

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Middle East    Region    Regulations    Regulations Specs & Testing