The additive maker said now that the expansion of its detergent production at Gonfreville is complete, the facility can produce more carboxylates and overbased sulfonate, which Oronite sells as supplemental detergents in additive packages. The company did not disclose costs or volumes of the expansion projects.

Oronite will also add carboxylate production to its Singapore additives plant, which it expanded in 2014. Expected to be completed in 2017, the expansion will double the companys worldwide carboxylate capacity, according to its January 12 press release.

At its Belle Chasse plant, Oronite expects to have expanded production by the end of 2016, in time for the next engine oil standards for passenger cars and heavy-duty trucks. Upgrades will include new and repurposed tankage, new piping, advanced blending capabilities, new mechanical equipment and new instrumentation.

Finnish Rerefinery Gets Second Life

The Hamina, Finland, rerefinery formerly owned by L&T Recoil Oy and EcoStream is back in operation under new owner STR Tecoil Ltd. According to Tecoils website, the rerefinery will handle 70,000 metric tons of used lubricants annually for an output of 50,000 tons per year of high quality base oils. The rerefinery produces four API Group II+ rerefined base oil cuts: N40, N100, N150 and N200. Side products include gas oils and bitumen flux.

Industrial Finance Finland STR Ltd. purchased the rerefinery in late July 2014 for an undisclosed amount, through an agreement with the rerefiners bankruptcy estate. Finnish rerefiner L&T Recoil Oy and parent company EcoStream Ltd. filed for bankruptcy at the end of last March, and the estate administrator then began seeking buyers for assets, including the rerefinery.

L&T Recoil Oy and then joint venture partner EcoStream opened the 45 million rerefinery in 2009. The plant was fed by used lubricants collected within the Nordic and Baltic countries and Finland.

Ukraine Trade Group Promotes Waste Oil Collection

Ukraines Alternative Fuels and Renewable Energy Association established a committee to provide technology standards and a cooperation platform for businesses involved with used lubricants. The committee aims to unite companies specializing in collection, utilization and processing of used motor, transmission, hydraulic, transformer and industrial oils, the association (APEU) said in an interview. The main goals are higher technological standards for the enterprises that work in the used oil industry, as well as their effective collaboration and networking, APEU said.

The committee also will encourage greater transparency in the Ukrainian lubricants market and interactions between industry leaders and government, contending that this would encourage more investment in the used lubricant market. Ukraines recent political strife stemmed largely from public outcry against corruption and its contribution to the nations economic hardships. The domestic oil industry is controlled by tycoons with government connections. In contrast, the used oil market is fragmented and features many smaller companies involved only with collection, use or filtering of used lubes.

The government introduced a waste oil utilization tax in 2012 to encourage used oil collection. No large scale waste oil treatment capacity or rerefinery has opened since the code was enforced in mid-2013. Bulgarian lubricants maker Prista Oil broke ground on a U.S. $60 million rerefinery near Kiev in October 2013. But the project was put on hold due to the violent protests and revolutionary events in the capital during the winter of 2013-14.

Estimates about the size of Ukraines lubricant market and potential for used oil collection vary widely. APEU calculated that the country generated 510,000 metric tons of used oil in 2014 and that this volume included 200,000 tons from finished lubes produced in Ukraine, and 310,000 tons from imported finished lubes. German lube maker Fuchs Petrolub pegged Ukraines total lubricant market at 350,000 tons in 2013.

Base Oil, Currency Trends Offset in Nigeria

Lubricant producers in Nigeria believe that declining oil prices will not impact finished lubricant prices in the country, saying local currency devaluation is canceling out the impacts of cheaper base oil. Godwin Emefiele, governor of Nigerias Central Bank, told the local press that the impact of falling crude oil prices has made it difficult for the bank to continue defending Nigerias naira. According to an article in the Vanguard newspaper, he explained that the CBNs Board of Governors recognized that it had to allow an upward movement in the naira-to-U.S.-dollar exchange rate.

Because of declining crude oil costs, prices of base oils on the international market continue to drop. If other factors remained unchanged, this would mean that local blenders could save money on their main raw material. But Nigeria imports all of its base oil, and base oil purchases are transacted in U.S. dollars. Therefore, the devaluation of the naira exerts an upward thrust on the naira cost of such imports.

Taiye Williams, managing director of blender Lubcon International, said producers are actually importing smaller quantities of base oils at the moment. However, Williams said that because of the nairas devaluation, the local market is not cutting finished lubricant prices.

Lukoil Expands in Middle East

United Arab Emirates-based car dealer Al Habtoor Motors and Russian lube maker Lukoil signed a partnership deal that will expand Lukoils lubricants distribution throughout the Middle East. Under the agreement, the car dealer will distribute Lukoils finished products for industrial and automotive applications in several countries in the Middle East Gulf region.

Lukoils lube arm LLK is the largest lubricant marketer in Russia and has a significant presence in Europe. Expansion in the Middle East and particularly in the U.A.E. is part of our global development strategy, said LLK International General Director Maxim Donde in a news release.

Lukoil pledged to expand its presence on the global lubricant markets, especially in the marine oils segment, where it held a 5 percent share of the worlds marine oil market for the first 11 months of 2014, according to Donde. At the moment we are looking with great interest at the markets of India and China, where we see great potential for growth.

Total Builds Grease Plant in China

Total announced that it will build a grease plant at its lubricant factory in Tianjin, China. The new plant will have capacity to make 5,000 metric tons of grease per year and is scheduled to open in the fourth quarter of 2015.

The grease plant will be Totals first in the Asia-Pacific region, and officials said the production capacity is needed to accommodate growing demand for the companys greases. The plant will cost RMB 50 million (U.S. $8 million) and will make lithium- and lithium-complex-based greases.

Blending Plant Slated for Qatar

Qatar Fuel (WOQOD) announced it plans to establish an engine oil production factory in Mesaieed Industrial City in Qatar. WOQOD supplies lubricants under different brand names that it currently sources from other companies.

The companys lubricants comprise fully synthetic, semisynthetic and mineral engine oils for cars, trucks and off-road equipment. In addition, it supplies gear oils, coolants, brake fluids, hydraulic and industrial oils and greases.

Qatar Fuel is a downstream oil storage, distribution and marketing company, formed in 2002 as a joint stock company listed on the Qatar Exchange. The company was formed from the fuel storage and distribution assets formerly owned by Qatar Petroleum.

Petro-Canada Expands in Europe

Petro-Canada Lubricants Inc. has broadened its product portfolio in Europe with the addition of API Group II Purity base oils. The company. already supplies Group III Purity base oils and Puretol pharmaceutical white oils in Europe.

“There is growing interest among European manufacturers to use Group II base oils for mid-tier lubricant formulations,” said Christie Longhurst, the companys category portfolio manager. “With this expansion we can ensure our European customers will have access to a comprehensive slate of base oils that are among the purest in the world.”