Market Topics

Newsmakers

Share

Oronite Expands in Singapore

Chevron Oronite has completed a major expansion at its lubricant additive plant in Singapore. The project increased the facilitys capacity to produce dispersants and, according to Oronite, padded its position as the largest additive plant in Asia. Officials said the expansion will help them meet the regions growing demand for lube additives, while also bolstering its global supply chain.

The company did not disclose the capacity of the plant or the cost of the project, but they have said the facility has more than doubled in size since opening in 1999. Besides adding reactors to increase dispersant production, the expansion increased storage capacity for raw materials and intermediates, upgraded production control processes, improved delivery efficiency and added a new quality control lab.

Oronite President Des King told Lube Report Asia that the plant may expand detergent capacity in the foreseeable future. We anticipate if the market continues to grow, in a few years we may be ready to do that, he said. He cited forecasts that Asias demand for lubricant additives will increase by 70 percent in the next decade.

The Singapore plant makes lubricant additive components such as dispersants, detergents and antiwear additives. It also blends components made elsewhere to produce lubricant additive packages that customers combine with base stock to make finished lubricants.

Hydrodec, CEP Ink U.K. Rerefinery Deal

Hydrodec signed engineering, licensing and technology collaboration agreements with Chemical Engineering Partners for a planned U.K. rerefinery capable of producing API Group II/II+ base oil, potentially by 2016. Announced August 1, the agreements would provide Hydrodec with an exclusive U.K. license to develop CEPs wiped-film evaporation and hydrogenation technology, as well as the basic engineering for a 75 million liter per year lubricant rerefinery.

The project is separate from Hydrodecs previous arrangements with Essar Oil UK to collaborate on a joint venture oil rerefining center at Stanlow, U.K., including a pilot plant focused on rerefining used paraffinic base stocks and later a rerefinery with API Group II+ and III base oil capacity, also by 2016.

Hydrodec is pursuing the CEP-enabled rerefinery project independently and at a separate, advantaged location on which it is developing an option for lease and development, according to its news release. Hydrodec foresees opportunities to collaborate with CEP on other projects by incorporating Hydrodecs provisionally patented pretreatment and hydrogenation technology within the CEP technology platform.

CEP President Joshua Park explained that Hydrodec believes some developments from its existing technology may be compatible with CEPs technology, and potentially make a very significant improvement to the used oil rerefining technology. According to Park, 10 rerefineries currently use CEPs technology.

Base Oil Expansion Planned in Turkmenistan

South Koreas Hyundai Engineering Co. and LG International Co. are in the midst of a project to expand capacity for base oil, fuels and other petrochemicals at Turkmenbashi refinery, the Turkmen Oil and Mineral Resources Ministry said in July. The project is expected to add 2 million tons per year of crude oil processing capacity to the refinerys current 6 million t/y capacity by 2015. It will augment the refinerys light and heavy gas oil processing, along with processing of other residues such as tar oil.

A new vacuum fractionating column has already been erected at the vacuum fuel-oil residue refining unit. The column was transported from the South Korean port of Masan, the ministry said. At the moment, construction is going on at the coke production plant with the tar oil deasphaltization unit and at the preliminary crude oil distillation unit, it said.

The U.S. $534 million overhaul of the refinery, located on the Caspian Sea, was launched in 2012 and is
expected to finish by mid-2015, according to a Hyundai official, quoted by Reuters in 2012. So far, modernization efforts have resulted in a finished catalytic cracking unit and the units for catalytic reforming, hydrotreatment of diesel fuel and treatment of kerosene.

Turkmenistans government expects crude oil processing capacity at the nations two refineries to reach 15 million t/y by 2015. It has set an ambitious target to upgrade its refining industry and boost its oil refining to 30 million tons by 2030. Current combined crude throughput is 10 million t/y.

KPI Bridge Names New CEO

KPI Bridge Oil, a global broker and trader in marine bunkers, marine lubricants and risk management products, has appointed Carsten Ladekjr as Chief Executive Officer for the group. Ladekjr brings 20 years experience in the bunker business to the position, having served as Senior Vice President and CEO of leading global bunker companies.

Tanzania Outs Substandard Lubes

The Tanzania Bureau of Standards published a public notice naming several passenger car and heavy duty motor oils the agency says do not comply with the countrys lubricant standards. The public notice, Poor Lubricant and Oils in the Market, appeared in the local Guardian newspaper in Tanzania. The agency is responsible for regulating standards in Tanzania.

The TBS is hereby notifying users of lubricants and oil products and the public in general, that the under mentioned brands of lubricants and oils used in vehicles do not comply with the Tanzanian Standard for products, i.e.,TZS 467:2001, Engine oils-Minimum performance -Specification, the notice stated. Legal action as per the standards Act No. 2 of 2009 will be taken against whoever is found selling, importing, distributing or involved in any transaction of such substandard products.

Due to widespread counterfeiting in Tanzania, product brand names may not accurately reflect the actual manufacturer of the product. Nichonia Mabuka, head of the agencys chemical section in Dar Es Salam, Tanzania, said that the act establishing the bureau of standards empowers it to inform the public of risk associated with patronizing substandard lubricants on the market.

Instead of going to individual companies/shops to raid, it is more rewarding to publish in a national newspaper. We think it is one of the ways we can enforce standards on the market properly, Mabuka said in an interview.

On the other hand, Mabuka said one of the challenges the agency has encountered in the war on substandard lubricants is that the Tanzania Bureau of Standards does not have power to regulate the Zanzibar end of the market, which accounts for most of the substandard lubes on the market.

However, to curb the situation, the governor of Zanzibar has come up with the establishment of [Zanzibar Bureau of Standards] to complement the TBS duty/role, Mabuka said, noting that the Zanzibar agency will complement the Tanzania agencys effort to sanitize the lubricant sector. Rhoida Andusamile, the TBS corporate and public affairs officer, emphasized that the aim of the public notice was to ensure that Tanzanians only consume lubricants that meet the required standards.

Klueber, Chem-Trend Invest in China

Klueber Lubrication and sister company Chem-Trend opened a research and development center near Shanghai, their parent company, Freudenberg Group, announced. The German companies also plan to expand lubricant and release agent manufacturing facilities that already exist at the site in Qingpu. Altogether the projects will entail investment of 150 million (U.S. $24 million) over the next three years, Freudenberg said.

Klueber is one of the worlds largest suppliers of specialty lubricants, while Chem-Trend offers specialty mold release agents and lubricants along with ancillary products. Freudenberg, which is based in Munich, Germany, said the investments are a reaction to growth in the Chinese market.

Our overall investment concept in China is in line with market and customer requirements, said Hanno D. Wentzler, regional representative of Freudenberg Group and chief executive officer of Freudenberg Chemical Specialities, the division that includes Klueber and Chem-Trend. He added that the research and development center is being built to provide technical services in closer proximity to customers.

Once the manufacturing expansion is complete, the Qingpu facilities will be Klueber and Chem-Trends largest production and sales site in Asia.

U.S. Sanctions Oil Supplier over Syria

The United States Treasury Department imposed sanctions on United Arab Emirates-based Pangates International Corp. for providing material support – including lubricants, lubricant additives and base oil – to Syrias government, including Syrian state oil company Sytrol. According to a July 9 U.S. Treasury Department news release, from at least 2012 to April 2014, Pangates supplied Syrias government, including Sytrol, with a large amount of specialty petroleum products. Although these products can be used for military or civilian purposes, they have limited civilian application in Syria, the department stated. In January 2012, Pangates arranged to supply the government of Syria, including Sytrol, with various specialty petroleum products, including automotive gear box oil, turbine oil additives and marine engine oil.

Between January 2012 and April 2012, the department said, Pangates supplied Syrias government with, among other things, 3,300 metric tons of lubricant oil additives, 155 metric tons of the fuel additive MMT and 1,000 kilograms of a static dissipator additive. In early 2012, Pangates participated in providing the government of Syria with over 4,000 metric tons of base oil, the department noted.

According to the news release, U.S. persons are generally prohibited from engaging in any transactions with Pangates, and any of its assets subject to U.S. jurisdiction are frozen. Alongside other administration efforts, we remain committed to applying economic and financial pressure on those providing support to the Assad regime, Under Secretary for Terrorism and Financial Intelligence David Cohen said in the news release.

From the onset of unrest in Syria to date, the U.S. has imposed sanctions on nearly 200 individuals and entities, including the government of Syria, its Central Bank and affiliated oil companies. Both the European Union and the U.S. have imposed sanctions on Sytrol.

Infineum Appoints Multisol as ME Distributor

Infineum announced that effective October 1, 2014, Multisol, part of Brenntag, will be Infineums distributor in the Middle East. Multisol will distribute Infineums lubricant additives across United Arab Emirates, Bahrain, Jordan, Lebanon, Iraq, Oman, Kuwait, Yemen and Qatar.

Having worked with Infineum since 1990, this appointment extends Multisols existing cooperation with Infineum in Europe and Russia. Multisol is a specialist chemical distributor, with facilities in England, France, Russia and South Africa, and it has been part of the Brenntag Group since 2011.

Temix Acquires Oleochimica Italia

Temix International Srl announced that S.A.P.I. SpA, an Italian company active in the manufacturing and
sales of animal fat, has acquired one-third of Temix international Srl. With this infusion of capital, Temix acquired 100 percent of Oleochimica Italia Srl (previously known as Undesa), located in Calderara di Reno (Bologna), manufacturer of fatty acids, glycerine, esters, etc. in Italy. Temix said the acquisition strengthens its position in the esters market, especially the lubricant sector.

Related Topics

Market Topics