Q8 Completes Antwerp Expansion
Q8Oils, the downstream arm of Kuwait Petroleum International, opened its expanded and upgraded 111,000-metric ton per year lube blending plant in Antwerp, Belgium. Completed with an investment of U.S. $100 million, the plant can scale to a production capacity of up to 221,000 t/y. The site has 24 base oil storage tanks and 42 additive tanks. It is served by highway, rail and sea shipments and houses a river jetty that can accommodate ships holding up to 5,000 tons.
One tank in the facility has capacity to blend batches as large as 353 tons. The plant features semi- and fully-automatic filling lines and, according to the company, can manufacture a wider range of products than any other such facility in Europe.
Q8Oils announced plans in the second quarter of 2010 to upgrade the facility and at one point expected to have completed the project by the fall of 2014. The companys May 2 announcement did not comment on reasons for delays to its initial targets. What [is] here today began as a master plan, KPI President Bakheet Al-Rashidi said in a press release. We look with great pride at the work Q8Oils has done in the Benelux region, especially in Belgium, said Al-Rashidi. Their growth in retail and direct businesses perfectly demonstrates the ambitious expansion program that Q8 is pursing in Europe.
EU Delays Lead Decision
Suppliers of metal alloys and metal removal fluids are waiting to see if the European Parliament will tighten limits on the use of lead in steel, aluminum and copper alloys. Metalworking fluid marketers will likely need to reformulate products if parliamentarians allow looser rules on the content of those metals to expire.
At issue is the European Unions Restriction of Hazardous Substances (RoHS), which outlawed the use of lead and certain other chemical elements in appliances, some consumer equipment, electric tools and other products. However, the Parliament added an exemption that allowed lead levels up to 0.35 percent by weight in steel, 0.4 percent in aluminum and 4 percent in copper alloys.
Traces of lead in alloys substantially reduce friction during machining, reducing thermal stress on tools and parts, speeding machining operations, cutting cycle times, and reducing power consumption. A draft revision to RoHS allows the exemption to expire on July 21, 2016. Thereafter, lead would be limited to no more than 0.1 percent by weight in alloys for a much broader range of products.
A request to renew of the exemption was submitted in January 2015. Parliament was expected to respond by January 2016 but postponed its ruling until mid-April 2016. As of this writing, no ruling has been issued.
Takreer Starts Production
Takreer, the refining arm of Abu Dhabi National Oil Co. has started commercial production of base oils at the companys Ruwais plant. Khalifa Mohammed Al Suwaidi, Takreers senior project manager, major products division, said the refiner activated production in the second week of April. Speaking on the sidelines of the Base Oil & Lubes Middle East 2016 conference in Abu Dhabi, he declined to comment on the delays that have set back the plants highly anticipated start-up on several occasions.
During a presentation at the same event, Ahmed Saleh Al Hamed, manager for base oils & special products for Adnocs refined products division, said the plant is initially producing API Group III oils of 4 centiStoke and 6 cSt viscosity, as well as Group II 2- and 3-cSt oils. After the plant is stabilized we will start production of Group III 8 cSt. Two berths at the refinerys jetty have been dedicated to base oils and can accommodate cargoes of 10,000 to 20,000 tons.
When fully operational, the Ruwais plant can produce up to 500,000 tons per year of Group III and 100,000 t/y of Group II base oils. Approximately 50,000 t/y is earmarked for Adnoc Distribution, a marketer and distributor of petroleum related products primarily in the UAE. According to Hamed, Adnoc intends to sell its base oils in several markets including India, Asia, Europe and the Americas.
Meanwhile, Adnoc Distribution has revealed it intends to press ahead with a new lube and grease plant located at Khalifa Port in Abu Dhabi. According to Saber Mohammed Al Ammari, lubes and grease plant department at Adnoc Distribution, the new 90,000 square meter facility will include a fully automated blending and filling plant. The first phase of the project, with a capacity of 100,000 t/y, will be completed by 2020 and the second phase, with a capacity of 200,000 t/y, by 2025.
Hazard Input Software Updated
The European Chemicals Agency has released a new version of the International Uniform ChemicaL Information Database (IUCLID), a software application to record, store, maintain and exchange data on intrinsic and hazard properties of chemical substances.
IUCLID is a key software application both for regulatory bodies and the chemical industry, where it is used in the implementation of various regulatory programs. Examples include the OECD Cooperative Chemicals Assessment Program and the EU Registration, Evaluation, Authorization and Restriction of Chemicals. REACH legislation requires data to be submitted to ECHA in IUCLID format.
IUCLID 6 is based on updated technology that will support the future evolutions of the tool. The format has been updated to take into account changes in legislation and the test guidelines. ECHA stated in a new release that the changes will help users report information in a clear and consistent way, improving the quality of the datasets. Updated technical features include a new user interface, new architecture including a database and application server, new data models and revisions to the format for inputting data and alignment of data structure between sections
Fuchs Lands Chevron Lubes
Fuchs Petrolub announced the acquisition of Chevrons worldwide white oils and food machinery lubricants business, which will be integrated into Fuchs Lubricants Co. (USA). The price was not disclosed.
This includes the brands and formulations for our white oils and food-grade product lines, Chevron spokeswoman Quyen Teng said in an interview. There are no physical assets or personnel involved in the deal.
A Fuchs spokesperson said the acquisition includes the customer bases for both product categories. Fuchs has purchased the Superla brand from Chevron, which is specific to the white oils business. The food machinery lubricants business will be integrated under Fuchs existing Cassida brand.
In other news, Fuchs announced it is expanding two production facilities in Australia, intending to spend AUD $1.75 million (U.S. $1.36 million) to expand its grease plant in Melbourne, to meet demand for locally developed products. The group will also build a lubricants factory at Beresfield, near Newcastle, New South Wales, to replace its plant in Wickham. Fuchs said it is scheduled to open the new facility in April 2017. The company didnt say how much it is investing at Beresfield or what volume it will be capable of producing.
Fuchs Lubricants Australia makes a range of engine, gear and hydraulic oils, coolants, grease and cleaning products. The company claims to make 95 percent of the products it sells in Australia and New Zealand at its Newcastle and Melbourne plants. In addition, the company has 15 distribution centers in the region.
Lukoil Preps Group II/III Production
Russias largest base oil refiner, Lukoil, announced it is preparing to introduce its proprietary technology to produce API Group II and III base oils. Weve opted to not buy technology from the international oil majors but instead, with the help of our specialists, to establish Lukoils patented high quality base oil production technology, Elena Fedoseeva, head of the companys base oil sales unit, said in an interview. The company expects to begin operating with the new technology in Volgograd by 2018.
Lukoil also reported that it produced around 860,000 metric tons of base oils in 2015, down 10 percent from 973,000 tons the year before. Around 40 percent of Lukoils base oil production is exported, Fedoseeva explained. In general, the base oil export volumes have been decreasing in recent years, but it was somewhat offset by stronger domestic consumption.
In 2015, Lukoil used more than half of its output for in-house blending of finished lubricants. In addition, around 230,000 tons were shipped to Lukoil affiliated companies, and around 150,000 tons were sold to other lube producers and traders, Fedoseeva said.
In other news, the company opened a lubricant storage and transfer terminal in Vienna. The terminal includes a tank farm and a mooring complex and is part of the second phase of a facility upgrade. The company said the terminal will help optimize logistics of base oil supplies from Russia and enhance the competitiveness of Lukoil products in Europe.