Exxon In, U.K. Out
The big story in this months magazine is the opening of the new ExxonMobil API Group II base oil refinery unit in Rotterdam. I had the chance to visit the site, my first opportunity to see a refinery up close and personal, and it was an impressive sight – lots of pipes, very tall towers and ice-cold rain.
The gleaming new plant has capacity of 1 million metric tons per year of Group II base oil, enough to make quite a ripple in the European base oil market and give blenders uninterrupted access to this mainstay base stock.
Another major story is Brexit. At the time of writing, we still have no clear path for Britains departure from the European Union, even though the official date of March 29 for the separation will have passed by the time you read this. This explains why coverage of this crucial event has been light in these pages. However, more is to come in following editions.
The U.K.s lubricant market is estimated at 560,000 metric tons per year, according to the UKLA, and the EU is its number one trading partner. Whatever your opinions about Brexit, its difficult to argue that there is much of an upside for an industry so connected with its European partners.
– Simon Johns
Simon@LubesnGreases.com