ExxonMobil completed the heavy lift of its vacuum fractionation tower for the hydrocracker at its Rotterdam refinery in April. About 50-meters long and 11-meters wide, the vacuum fractionation tower is the largest piece of equipment placed on the foundation intact. The tower weighs about 400 tons and is used to separate products under reduced pressure, so less energy is needed.

The tower installation was preceded by the lift of the three reactors in February. Once the hydrocracker expansion is complete, the Rotterdam refinery will produce ExxonMobils EHC API Group II base stocks in Europe for the first time. The company said that production start-up is on track for late 2018.

Quaker to Acquire Houghton

Quaker Chemical announced an agreement to acquire Houghton International in a deal that will combine two of the worlds largest suppliers of metalworking fluids. Houghton is currently owned by Indian conglomerate Hinduja Group through its Gulf Oil lubricant business. The deal calls for Hinduja to take a nearly 25 percent stake in the combined company and to be given three seats on the board of directors.

Quaker officials said the combined company will offer a broader range of products, allowing cross-selling opportunities that should fuel near-term growth. They also predicted that the combined company will be better at bringing products to market. Geographically, 40 percent of the combined companys sales will be in North America, 31 percent in Europe, the Middle East and Central Asia, 24 percent in Asia-Pacific and 5 percent in South America.

Per the agreement, Quaker Chemical will pay U.S. $172.5 million in cash, assume Houghtons net debt ($690 million at the end of 2016) and conduct a stock exchange that gives Hinduja a 24.5 percent stake in the new company. This will make Hinduja Quaker Chemicals largest shareholder. The transaction requires approval from Quaker Chemicals shareholders as well as from governing bodies in several regions.

The companies, both headquartered the Philadelphia area, will continue to operate independently until the transaction is completed either in the fourth quarter of 2017 or the first quarter of 2018. After the agreement goes through, Houghton will no longer be a subsidiary of Gulf Oil.

Sinopec Buys Chevron South Africa Refinery

Sinopec is purchasing a 75 percent stake in Chevron Corp.s South African assets and its subsidiary in Botswana for nearly U.S. $1 billion. The remaining 25 percent of the South African assets will continue to be held by a group of local shareholders, in accordance with South African regulations.

The assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban and 820 petrol stations and other oil storage facilities. The deal, which is subject to regulatory approval, also includes 220 convenience stores across South Africa and Botswana.

South Africas demand for refined products has increased by nearly 5 percent annually over the past five years, to a current total of about 27 million tons, according to Sinopec. The company said it would retain the existing workforce as well as the Caltex brand for the retail fuel stations for up to six years before launching a rebranding effort.

Dubai Tackles Illegal Trading

Five government agencies have joined forces in an effort to curb illegal lubricant trading in Dubai, United Arab Emirates. The group, which was also assisted by state-owned Emirates National Oil Co., is trying to root out engine oils that do not meet the recently adopted minimum standards, API SL and API CH-4.

The Emirates authority for Standardization and Metrology now also requires lubricants sold in the UAE to be registered. This allows the organization to monitor the product quality and standards of any lubricant sold in the country. The same agencies also monitor fuel quality.

In a press release about the program, ENOC said agencies have already conducted several inspections, and an unspecified number of trading companies and agents were penalized for numerous violations, ranging from the use of unsafe fuel and lubricants storage facilities to illegal trading of off-spec products. Many of the companies inspected were either unable to present the required certifications from ESMA or violated environmental preservation laws. They were subsequently fined by the Dubai Municipality, the press release stated.

Lubrizol Expands in Hazelwood

Lubrizol Ltd. announced plans to build a multimillion dollar eco-friendly training center at its Hazelwood, U.K., site. The new center is scheduled to be operational by the end of 2018. The building will replace the current training facility and will be energy efficient, using solar power, water recycling, a geothermal heating system and a living green roof. Cost of the project is projected to be 8 million.

Shell Secures IMPA Accreditation

Shell Marine announced that it has received accreditation under the International Marine Purchasing Associations IMPA ACT
Sustainable Maritime Suppliers scheme. Preferred supplier status is conferred within the IMPA Responsible Supply Chain Management Initiative that seeks to
improve the economic, social and environmental sustainability of international shipping and marine industries.

We are delighted to be the first in our sector to secure accreditation under the scheme, said Jan Toschka, executive director Shell Marine. We see this recognition under the IMPA ACT scheme as particularly important. Our customers also confirm that the IMPA ACT preferred supplier status is being used as a benchmark for quality throughout the supply chain.

Preferred supplier accreditation is awarded to organizations that meet the IMPA ACT standards or reach agreed milestones, in a process that is audited by IMPA and may be subject to spot checks. IMPA ACT is an exclusive community of ship purchasers and suppliers working to become sustainability frontrunners by working toward compliance with internationally endorsed standards, said Stephen Alexander, IMPA Secretary General & COO. It is an independent initiative representing international best practice and is aligned with UN principles.

Russian Lube Consumption to Grow

Russian passenger cars and light commercial vehicles consumed 280 million liters of motor oils in 2016, up 4.3 percent from 2015. According to a recently published report, the growth of the countrys vehicle fleet should spur a recovery for its lubricants market.

Replenishment of the active passenger car and light commercial vehicle park in Russia is expected at an annual growth rate of 2.3 percent and 3.5 percent, respectively, by 2019, said Victor Pushkarev, head of projects at Autostat. Also, we found that last year, almost 90 percent of the total active foreign-branded passenger cars in Russia used semisynthetic and synthetic motor oils, while only 50 percent of Russian-made cars [did].

The study found that in 2016 Russian lubricant makers exported around 192 million liters of motor oils, up 25 percent from 2015. Gazprom Neft and Lukoil, the countrys largest lube marketers, exported the largest volumes last year. Each company accounted for 35 percent – 67 million liters each – of total automotive lubricant export volumes.

In 2016, Russia imported around 110 million liters of motor oils, and five lube makers accounted for more than 70 million liters, or 64 percent of the total: BP, Total Lubricants, ExxonMobil, SK-Lubricants and LiquiMoly. Pushkarev added that import volumes rose 2.5 percent.

The report concluded that Total offered the most types of lubricant products in the country in 2016 (102) while BP, ExxonMobil and Shell offered 58, 51, and 37, respectively. The Russian version of the report is available for purchase at Autostats website: www.autostat.ru/research/product/241/.

Total Signs with Arabian Supply Center

Total Marketing Qatar, a subsidiary of Total Marketing Middle East, announced the appointment of Arabian Supply Center as the distributor for its Elf brand lubricants in Qatar. This adds to Arabian Supply Centers extensive range of construction and industrial equipment products, spare parts, lubricants, tires and batteries in the market.

Hisham Hadid, ASC CEO, stated, ASC is glad to partner with Total and expand the Elf brand in the market, providing a team of experts with extensive experience in this field. The distribution agreement enables Elf to further penetrate the retail and commercial segment in the developing Qatari market.

Intertek Acquires KJ Tech, Expands U.K. Testing

Intertek has completed the acquisition of KJ Tech Services GmbH, a vehicle, component, lubrication and fuel testing enterprise, based in Griesheim, Germany. KJ Tech employs 100 people and provides vehicle road fleet testing, data accumulation and analytical assessment for components, systems, lubricant and engines, test method development and industry benchmarking.

As the complexity of vehicle technology increases, collaboration between OEMs and specialist testing partners is becoming increasingly important, Intertek stated in a news release. Full vehicle testing is seeing a growing demand for on-road solutions, testing vehicles in all types of driving and road conditions.

Tim Hubbard, senior vice president of Transportation Technologies at Intertek, added, With growing consumer demand for vehicles with higher performance and lower fuel consumption, the automotive industry is developing increasingly more complex technologies. The collective experience of Intertek and KJ Tech will provide clients with comprehensive on-road evaluation solutions and performance data combined with the long history of our simulated, in-lab validation service offerings.

Intertek also announced expanded grease testing capability at its Farnborough, U.K. site, which now offers more than 40 different methods, testing for consistency, antiwear, extreme pressure load carrying capacity and corrosion prevention. The lab will also assist with physical testing, chemical analysis and fault finding. In addition, it can conduct Re-life testing of aviation greases, extending the usable working life of these greases and helping to reduce customer costs while also supporting the environment.

Farnborough operates a dedicated grease testing laboratory with a wide range of testing equipment specializing in grease compatibility, performance testing, failure analysis and also off-line condition monitoring. We are now a one-stop-shop for many customers for both lubricants and greases, making it far easier and more efficient and convenient to solve customers problems under one roof, said Rob Belcher, lubrication engineer at Intertek UK.