Russian oil major Lukoil will break ground on its new blending plant in Almaty, Kazakhstan, in the spring of 2016, the company said in an interview. Lukoil head Vagit Alekperov announced the plans to build the U.S. $80 million, 100,000 metric ton per year blending plant in 2013. However, the company postponed its efforts due to Kazakhstans restriction on the import and export of base oils and finished lubricants to and from the country.

In 2015, the Russian and Kazakh energy ministries reached an agreement for lifting the ban for supply of raw materials to the future plant, Roman Milash, general director of Lukoil Lubricants Central Asia (LLCA), said. The agreement stipulates open Kazakh borders and access to neighboring markets, including the largest one in China.

In 2015, LLCA opened a representative office in Urumqi, the capital of Xinjiang Uyghur autonomous region, Northwest China. The region borders Kazakhstan, and Almaty is only 300 kilometers from the border. We expect to start selling our products in this region very soon, and by 2018 we will have prepared solid ground for mass sales of finished lubricants coming from our new plant in Kazakhstan, Milash said.

Lukoil said that the facility will become the largest lubricant production and logistics complex in Central Asia. We will have a modern training center and a high-tech lab to prepare industry specialists. Early on, we expect to considerably strengthen LLK Internationals positions in the region, thanks to our logistical advantage, flexibility of manufacturing lubricants and packaged products, Milash said.

Brightstock Alternatives to Gain Ground

The brightstock market faces dwindling supplies, and in its recently published report, The Global Business Outlook for Brightstocks, Kline & Co. consultancy estimates that, even with limited new capacity additions, the market faces a potential deficit of at least 6,000 barrels per day by 2025. Although demand for brightstock for automotive engine oils will drop due to the shift to multigrade oils, that alone cannot compensate for the declining supply, Kline said in a news release.

Blending requirements for marine and other heavy industrial lubricants continue to expand demand for brightstock, a critical component for these applications. Spotting an opportunity, a few brightstock suppliers have undertaken capacity expansion projects that will address some of the growing deficit.

Rationalization of older, less efficient API Group I plants has resulted in a decline in brightstock supplies, a trend that is expected to continue in the future. Although brightstock can be produced by Group II and naphthenic refineries, few refiners have taken that route.

According to Anuj Kumar, project manager in Klines Energy Practice, The anticipated shortfall in the brightstock market is expected to be bridged by various substitute products, including polyisobutenes, polyalphaolefins and polyalkylene glycols. Of all the potential substitutes, PIBs are expected to address the bulk of the shortfall after taking into account blending cost, technical performance, compatibility issues and consumer behavior. However, pricing and availability are the two prime factors that could hinder the acceptability of PIBs (and other substitutes like PAO and PAGs) in the event of a shortage of brightstock.

To order The Global Business Outlook for Brightstocks, visit www.KlineGroup.com.

Chevron Launches Turkey Hub

The volume of commerce moving through and within Turkey is growing rapidly. That means more truck traffic, more demand for diesel engine oils and greater need for the base oils used to make them. Its no surprise, then, that a base stock supplier like Chevron would want to jump into the Turkish market.

The U.S.-based company has announced an agreement for Istanbul-based chemicals distributor Ekin Kimya to supply its base oils and process oils in the country. According to Chevron, the amount of trade passing through Turkey has grown to U.S. $2 trillion, and 60 percent of that commerce moves by road. As a result, the country plans to build more than 5,500 kilometers of new roads.

The fleet moving on that roadway is growing, and the vehicles are getting newer, Chevron said in a press release about its agreement with Ekin Kimya. The engines require higher performing lubricants for optimal performance.

The Chevron oils supplied by Ekin Kimya will be stored at Solventas Terminals in Gebze. By adding a hub in Turkey, we are shortening the supply chain for Turkeys lubricant blenders, making it easier and more economical for them to support the growing market, a spokeswoman for Chevron said.

REACH 2018: Sharing Data & Costs

The requirement to share data between companies registering the same substance is one of the fundamental aspects of the REACH Regulation. By doing this, registrants can reduce the costs and avoid unnecessary testing, especially on vertebrate animals. The European Chemical Agency recently issued an advisory on data sharing.

An important step toward successful REACH registration is getting organized with your coregistrants, ECHA stated in a news release. How this is done depends on whether the substance is already registered or not. Setting up the cooperation is the third phase of the REACH Roadmap for 2018.

If no registration for the substance exists, coregistrants have to set up a new substance information exchange forum (SIEF). This means, among other things, agreeing on practical ways to work together, sharing available scientific data and deciding how to fill data gaps before preparing and submitting a joint registration dossier. Companies also need to share costs in a fair, transparent and nondiscriminatory way among SIEF members.

If the substance is already registered, preparatory work has likely been done, and new registrants can contact the SIEF to become part of the joint submission. They will have to negotiate to get access to the data they need and take part in sharing the costs.

ECHA emphasized, Registrants should avoid new tests by making
full use of alternatives to animal testing. They should also be aware that ECHA will not accept registrations where data has obviously not been shared.

As for data available outside the SIEF, ownership must be respected and compensated for. Practical advice for new SIEFs and for negotiating with existing registrants is now available on ECHAs website.

UASC & Lukoil in Supply Pact

United Arab Shipping Co. (UASC), a container shipping line, and Lukoils Dubai-based marine lubricant segment have signed a supply agreement covering vessels from UASCs advanced new-building program, with 17 new vessels on order – six 18,800 TEU ships that the company says are the greenest in the world, and eleven 15,000 TEU container ships.

Lukoil Marine Lubricants has already supplied 8 of the 17 container ships. The company will also equip UASCs vessels with the iCOlube cylinder oil lubrication unit that helps optimize the performance and efficiency of vessel engines. iCOlube is said to reduce carbon dioxide emissions by up to 13 percent.

Kazakh Lube Producer Stumbles

One of Kazakhstans two lubricant producers saw its output fall by 60 percent in 2015, according to the administration of the South Kazakhstan region. The decline was blamed on troubles in the countrys oil-dependent economy.

Hill Corp. made just 8,900 metric tons of finished lubricants at its blending plant in Shymkent last year, down from 22,500 tons in 2014. The plant, which opened in 2010, has capacity to produce 70,000 t/y. The nations lubricant demand is reportedly down because the economy has been hurt by the crash in crude oil prices.

In 2015, the company produced 8,900 tons of finished lubricants and made revenue of 7 billion Kazakh tenge [U.S. $21 million], the administration said in a news release. The release added that construction should soon begin on an API Group III base oil plant that Hill plans to build with funding support from the state and private investors. It said the plant, which will also be located in Shymkent, should open in 2018.

With its economy suffering because of the loss of oil revenues, Kazakhstan has devalued by about 50 percent since August. The recession in Russia and the economic slowdown in China, Kazakhstans largest trading partners, make the situation worse, and many analysts forecast its economy will contract in 2016.

Chemtura Appoints BRBas Distributor

BRB International, a producer of lube oil additives and chemicals, has been appointed exclusive distributor of Chemtura detergents such as neutral and over-based sulfonates in the Middle East. Sulfonates are used as detergents or rust inhibitors in crankcase additives and lubricants.

BRB also announced that Sandrine Duc has joined the company as senior sales manager responsible for France and Italy. She is also the product line manager for Viscotech products.

Gazpromneft Joins ATIEL

ATIEL, the industry association representing manufacturers and marketers in the European lubricants industry, announced that Gazpromneft Lubricants joined the organization at the start of 2016. Founded in 2007 as a subsidiary of Gazprom Neft, the business today includes five manufacturing sites in Russia, Italy and Serbia with total blending capacity of 500,000 tons of lubricants and greases. It exports products to 50 countries through an international distribution network and has a European office in Rome.

Alexander Trukhan, director general of the company said, Membership in ATIEL is another step to ensure that our products meet the highest international standards. As part of its membership, Gazpromneft Lubricants will take representative positions on the ATIEL General Assembly and several of ATIELs technical committees.

Blenders Dispute Textile Lubes Scarcity

Nigerian officials said a shortage of textile lubricants contributed to the downfall of the countrys textile industry, but blenders there said that it was the other way around. The debate was set off by Waheed Olagunju, executive director of small and medium enterprises for the Bank of Industry, who noted at a BOI Vocational Skills Competition in Kaduna that lack of lubricants was one of many factors that contributed to the collapse of Nigerias textile industry. Femi Adekoya, BOIs head of media, confirmed the comments.

Several blenders disputed the theory, stressing that the raw materials needed for lubricants such as spindle oils, needle oils and sinker oils are available to regional blenders, but that such specialty oils are produced only when theres demand for them. According to a report in the independent Nigerian newspaper, The Guardian, the nations textile industry grew at an annual rate of 67 percent between 1985 and 1991, employing over 350,000 people at around 180 textile mills. Now, most of the approximately 25 mills still in operation run at less than 40 percent of capacity and only employ around 25,000 workers. The report noted that most industry participants said it has been hard to compete with an influx of cheaper fabrics from Asia and other regions.

Textile lubricants were produced by many companies ‎in the past, but were reduced as a result of low patronage occasioned by the collapse of the industry, said Olaniyi Okedairo, chief operating officer for Ronad Oil and Gas West Africa Ltd. Textile lubricants may not be scarce, but [buyers] need to place an order before they can be produced [because they] are not fast-moving products, said Adesina Adewunmi, general manager for additive supplier Nelcon Energy.

Emmanuel Ekpenyong, head of lubricants for Honeywell Oil and Gas, concurred. In the textile industry, the lubrication requirements vary from machine to machine and from production step to production step, he said. The loads, speeds and vibrations on the bearings, chains and gears also vary greatly. In most cases, machine manufacturers specify different lubricants to be used for the different lubrication points. This, therefore, results in a huge logistical effort for blenders. [Therefore], the manufacture of most industrial lubes – including textile lubes – is carried out on demand.

Houghton Partners with SMS

Houghton International and SMS Group announced an exclusive partnership to develop and distribute rolling oils for metal production. SMS Group is one of the worlds largest manufacturers of ferrous and nonferrous plants and mill equipment for the production of flat, long, tubular and wire products. The company will work exclusively with Houghton to develop and apply metal rolling technologies to meet the future demands of global metal producers.

Through this partnership, Houghton and SMS will leverage their research and development resources to develop advanced metal rolling oils, and Houghton will become the exclusive distributor of oils for SMS mill equipment, the companies said in a joint news release. This will enable SMS to offer a complete system of rolling mill technology, including advanced cooling lubricants, to its customers worldwide.

We are pleased to announce this exclusive partnership, as SMS and Houghton are leaders in the field of metal rolling equipment and fluids, said Marcello Boldrini, president, global metals & mining and Asia for Houghton. We now offer the only engineering and lubrication solution to global metal manufacturers, which enables us to provide the most advanced and targeted solutions to our customers.

Axel Americas Expands Grease Plant

Axel Americas completed expansion of its grease plant in Mississippi, built in response to growing demand for its industrial and automotive greases supplied to multinational companies and large distributors in the Americas. The expansion at the Rosedale plant includes a new calcium sulfonate production line and an additional polyurea production line, the company said in a news release. The investment includes four new production kettles, a programmable logic control system, seven new bulk finished-good storage tanks and two new base oil storage tanks. In addition to the new production lines, Axel said it has also installed a new cartridge filling line that can fill 56,250 cartridges per shift.

Tom Schroeder, president of Axel Americas, said the expansion will allow Axel to produce some of the more specialized grease technologies its customers are demanding. He noted that while lithium and lithium complex greases still dominate in overall grease production, calcium sulfonate is a growing and expanding segment. On the polyurea grease side, Schroeder said, Axel has seen growing demand for electric motor greases.

Nynas Reinforces TireOil Team

Nynas announced that Mika Lahtinen has taken the post of Senior Technical Advisor with a focus on the rubber and tire industry. Lahtinen recently served as Head of Tire Material Research & Development at Nokian Tyres, which has around 4,200 employees and production facilities in both Finland and Russia. According to a Nynas release, [Nokian] has specialized in developing and manufacturing tires that are adapted to the difficult driving conditions that prevail in the Nordic region because of the extreme changes in the seasons.

The extensive competence and industry knowledge of Mika Lahtinen will enable Nynas to further improve its offering for the rubber and tire industry. This recruitment strengthens our commitment to become the best long-term partner for producers of polymers, rubber and tires globally, says Dr. Valentina Serra-Holm, technology and marketing director Nynas AB.

Fuchs Boosts Scandinavian Presence

Fuchs Petrolub SE has acquired 100 percent of the shares in Statoil Fuel & Retail Lubricants, manufacturers of automotive and industrial lubricants and specialties. A spokesman said that the purchase strengthens Fuchs presence in Scandinavia, Poland, Russia and the Baltic States. The purchase has been cleared by competition authorities, and the transaction has been closed.

Metalube Opens Dubai Office

Metalube announced that it has opened an office in Dubai, creating Metalube Arabia. Nick Pomeroy who has worked in the region for the past 10 years will head the new operations. He said, This is an exciting time for Metalube with the launch of a range of new products. One of the key areas in the region that we are focusing on is the oil and gas industry.

Metalube manufactures a range of nonferrous drawing oils and maintenance lubricants as well as a variety of corrosion protection and forming oils. The company has offices in China, India and Brazil.