The tax is aimed at improving Londons air quality and is in addition to an existing 11.50 congestion charge during the same 7 am to 6 pm, Monday to Friday, timeframe. The new levy is expected to affect up to 10,000 vehicles.

Kahns plans to reduce pollution levels in the city include expanding and expediting the Ultra-Low Emissions Zone, as well as faster roll-out of low-emissions double decker buses. He proposes to introduce the Ultra-Low Emissions Zone a year earlier than planned in 2019, and extend it beyond central London from 2020 to the North and South Circular. Cars, vans, trucks and buses that fail to meet emissions criteria would be charged 12.50 and up.

ExxonMobil Plans Major U.S. Expansion

Exxon Mobil Corp. plans to invest U.S. $20 billion over the next 10 years to expand its manufacturing capacity along the U.S. Gulf Coast. In a news release, the company said the projects at 11 proposed and existing sites are expected to generate thousands of new jobs and $20 billion in increased economic activity in Texas and Louisiana.

Darren Woods, chairman and chief executive officer, said that the expansion projects are expected to provide long-term economic benefits to the region, noting the creation of direct employment opportunities and the multiplier effects of the companys investments. According to the American Chemistry Council, chemical manufacturing is one of the countrys top export industries, accounting for 14 percent of overall U.S. exports in 2015. Most of ExxonMobils planned new chemical capacity investment is targeted toward export markets in Asia and elsewhere.

Saudi Aramco to Market Group I, II and III

Saudi Aramco has launched a base oil marketing business that will offer API Group I, II and III base stocks branded as aramcoDura, aramcoPrima and aramcoUltra. We are very excited to launch our base oils brands and intend to streamline our base oils strategy, Vice President of International Operations Said Al-Hadrami said in a press release.

The companys website said it will offer Group I oils under the Dura brand name, Group II under the Prima name and Group IIIs as Ultra. Aramco itself has not previously marketed base stocks, though it holds a 70 percent stake in Luberef, which operates Group I plants in Jeddah and Yanbual Bahr, Saudi Arabia. The website indicated that at least some of the Dura oils will come from Jeddah.

The source of the Group II and III oils was not disclosed, but Aramco said it is working with affiliates to arrange supply. The company would seem to have a few options for Group II. Luberef is in the midst of expanding and upgrading its Yanbu plant to add Group II capacity, along with increased bright stock capacity. And the company expects to become sole owner of the worlds largest Group II plant – the Motiva facility at Port Arthur, Texas.

Finally, Aramco owns a controlling stake in South Korean refiner S-Oil, which operates a Group II and III plant in Ulsan, South Korea. S-Oil markets its Group III oils under the Ultra brand name.

New ATIEL Code of Practice Published

ATIEL, the technical association of the European lubricants industry, has released Issue 20 of its Code of Practice, which provides guidance for developers and marketers of engine lubricants designed to meet current European performance specifications. Issue 20 incorporates technical guidelines that bring it into line with the latest engine lubricant performance limits set by the European Automobile Manufacturers Association (ACEA) in its 2016 European Oil Sequences.

Updates to technical guidelines and read-across tables accommodate several key changes to performance specifications introduced in ACEA 2016, including: new engine and lab tests, introduction of C5 category and removal of A1/B1 category and removal of the grandfathering principle for certain tests.

To assist lubricant developers in complying with the new requirements of ACEA 2016, ATIEL has made some structural changes to Issue 20. For example, section ordering more closely reflects a typical lubricant development program. In addition, clearer definitions are given for the roles and responsibilities of parties involved in the development process.

New sections have been added to enhance clarity for auditing purposes. And appendices have been restructured so that all BOI and VGRA read-across tables are grouped together.

Issue 20 of the ATC Code of Practice is available at atiel.org/code-of-practice/code-of-practice.

Milestone Reached on Motiva Separation

Royal Dutch Shell plc announced the signing of binding definitive agreements between its United States downstream subsidiary SOPC Holdings East LLC and Saudi Refining Inc. on the separation of assets, liabilities and businesses of Motiva Enterprises LLC. Motiva was formed in 1998 and has operated as a 50-50 refining and marketing joint venture since 2002.

A year ago the companies signed a nonbinding letter of agreement to divide the assets of Motiva, with its API Group II base oil plant in Texas becoming solely owned by Saudi Aramco affiliate Saudi Arabian Oil. Last month, they confirmed Saudi Arabian Oil will pay U.S. $2.2 billion in cash and assumed debt, and will assume full ownership of the Motiva Enterprises name, along with the Port Arthur refinery and 24 distribution terminals. Subject to approvals, the transaction is expected to close in the second quarter.

Blend Plant Opens in Azerbaijan

Lubricant maker Technol has opened a 50,000 metric ton per year blending plant located in Azerbaijan, calling it the first blending plant in the South Caucasus. The U.S. $2.7 million facility is located in the industrial town of Sumqayit, on the Caspian Sea near the capital of Baku. Technol has plans for future sales expansion into Russia, Iran, Turkey, Georgia and Central Asia.

Azerbaijan supplies all of its finished lubricants from import, and Technols competitive advantage will be a discount of at least 50 percent in the prices of its finished products, compared to imports, Murad Rafiev, the companys executive director, said in an interview. In the foreseeable future, we plan to expand the capacity of the plant to 80,000 t/y. Market research has shown that we have a strong position in the region and can supply not only the growing Azerbaijan market but all neighboring countries as well.

The plant employs a workforce of 50. And Technol is supported by government incentives such as tax breaks and exemptions from duties on equipment imports.

OMV Sells Turkish Retail Business

Vitol Group acquired OMV Petrol Ofisis lubricants and fuels distribution business in Turkey, including a finished lubes blending plant, for $1.4 billion (U.S. $1.5 billion). The purchase is expected to be finalized in September, subject to conditions and relevant regulatory approvals. OMV Petrol Ofisi, a subsidiary of Austrian energy giant OMV, is the leading domestic lubricant marketer in Turkey with 114,000 tons of lubricants sold in 2016.

OMV Petrol Ofisi operates a 140,000 metric tons per year blending plant in Derince, Kocaeli province that produces engine oils, industrial oils, hydraulic brake fluids, greases, diesel engine oil additives and antifreeze. The company held a 25 percent share of the 420,000 tons sold in the Turkish lubricant market last year, according to Petder, a Turkish oil industry association.

In addition, the company has the largest fuel retail network in the country, with more than 1,700 stations, and is a leading fuels supplier to commercial and industrial customers in Turkey, with 10 fuel terminals, two liquefied petroleum gas terminals, 28 airport supply units and over 737,000 tons in fuel storage capacity.

OMV said its Turkish assets were a burden to its broader operations in the region and will represent an impairment loss of about 186 million in its fourth-quarter financial account, in addition to 148 million in losses recorded as at the end of December, when it reclassified the asset as held for sale. OMV cited the devaluation of Turkeys lira as a particular sore spot, saying that by September the currencys fall against the euro will have cost the company an estimated 1.1 billion since OMV acquired Petrol Ofisi in 2010.

Vitol said that Petrol Ofisi holds a strong position in the countrys growing market. It is a market leading brand, and we are committed to maintaining this excellent track record and greatly look forward to working with the companys team to capitalize on Turkeys strong economic performance and growing demand for energy products, Ian Taylor, president and CEO of Vitol, said in a news release.

Infineum Opens in India

Infineum International Ltd. announced the establishment of its first wholly owned entity in India, Infineum India Additives Private Ltd., based in Mumbai. The office, located at The Capital, Bandra Kurla Complex, will provide marketing support and business development for Infineum in India. The operation is headed by S K Raghuram – Country Director.

The Indian government announced its intention to implement Bharat Standard VI emission norms, equivalent to Euro-VI specifications by April 1, 2020, in response to rising air pollution in the country. India is undoubtedly one of the most rapidly expanding and dynamic fuel and lubricant markets, and one that holds an enormous amount of opportunity for our customers, commented Aldo Govi, executive vice president, sales. Todays announcement marks the next stage in the implementation of the Infineum strategy in Asia and further consolidates our long-term relationships with customers in India and the wider region.

Gazprom Neft Grows in
South Caucasus

Russian lube maker Gazpromneft-Lubricants sold 900 tons of finished lubes in Georgia in 2016, 20 percent more than the year before. Georgia is a tiny lubricant market, with annual demand of just 11,200 tons in 2016, according to Gazprom Neft. But the company views it as a key stepping stone to expansion in the region. Next, it plans to enter the Azerbaijan market.

Last year we succeeded to capture 8 percent of the Georgias total lubricant market and sold there 900 tons of our products, Giorgi Shamatava, head of G-Energy Georgia, said in a press release. Shipments to the country are coming from Russia and Italy. Our aim is to pass the 1,000-ton mark in 2017.

The company said its growth in Georgia stems from sales through its G-Energy branded service and fast lube chain, which now has four stations in Georgia, with two more in the works. The company also has four stations in Armenia. Altogether, Gazprom Neft has more than 50 stations in eight countries.

SIP to Distribute NanoLub

SIP has been named European distributor of NIS NanoLub technology. Nanotech Industrial Solutions manufactures nanosize particles of inorganic fullerene-like tungsten disulfide for use in additives and greases. We are excited to be working with NIS because we believe their technology will help our customers meet their performance and environmental targets, given the reduction in wear and improved frictional characteristics achieved when formulating with NIS nanomaterial, said Kerry Larkin, SIP Commercial Director.

NISs NanoLub product range includes antiwear and antifriction oil and grease additives for extreme pressure applications as well as fully formulated EP oils, EP greases and dry coatings. The lubricants are used in engines, gearboxes, bearings, compressors and many other applications.