Avista Taps into Group III
Used oil rerefiner Avista Oil is making API Group III base oil at its plant in Peachtree City, Georgia, steadily increasing it to about a quarter of its total base oil capacity and laying plans to double that this year.
This development makes Avista Oil the first rerefiner in the world to produce Group III commercially, as well as the sole United States producer of Group III on an ongoing basis, according to LubesnGreases Guide to Global Base Oil Refining.
Juan Fritschy, CEO of Avista Oil Refining and Trading USA, said the plant near Atlanta is punctuating production of its Group II and Group II+ stocks with regular batches of Group III. Peachtree City produces around 80,000 metric tons per year of base oil, he added.
To achieve Group III quality without changing the plants overall capacity, which is 1,700 barrels per day, Avista Oil spent two years adjusting all the steps of its used oil collection and rerefining process. Fritschy mentioned that the facility now makes around 8,000 tons of Group III base oils, accounting for 10 percent of production, which they plan to gradually increase.
Depending on market conditions and on what our customers require, our next milestone is to convert 50 percent of our production to Group III quality. We expect to achieve this milestone in 2017, he said. Our ultimate goal is to have a cost-effective and flexible process that adapts to the demand for different qualities of base oil.
ACEA Releases 2016 Specs
December 1 marked the commercial introduction of Europes ACEA 2016 Oil Sequences for passenger vehicles and heavy-duty trucks-a long-awaited update that significantly raises lubricant performance in several areas.
The latest engine oil specifications from the European Automobile Manufacturers Association (ACEA) come four years after the previous upgrade and raise the bar for compatibility with new engine designs, tolerance of alternative fuels, fuel efficiency and compatibility with new seals materials.
The specifications include two sequences for passenger vehicles. A/B oils are for gasoline- and diesel-powered vehicles and those containing high levels of sulfated ash, phosphorus and sulfur. These substances, referred to collectively as SAPS, have traditionally been popular lubricant additives but can compromise emissions control systems used in modern vehicles. C sequences are for gasoline and diesel oils with low levels of SAPS, while E is for heavy-duty.
The 2016 sequences were originally intended to be introduced in 2014. The delay was mainly caused by a longer list of performance parameters that automakers needed to have addressed.
Calumet Blends for Castrol
Calumet Specialty Products partnered with BP Lubricants USA to blend Castrol motor oils at its newly expanded blending and packaging facility in Shreveport, Louisiana.
Indianapolis-based Calumet discussed the partnership in general terms during a November 2016 third quarter earnings conference call, where it said it had reached a tolling agreement with BP to blend and package 10 to 15 million gallons per year of lubricants.
Calumets capital improvement project to expand the 15-acre Shreveport facility was needed to support the growth of its blending and packaging business. When Calumet acquired the plant in 2012, it was an 85,000-square foot production and warehouse facility with bulk tank storage capacity of approximately 1.5 million gallons. The Shreveport facility now has 400,000 square feet in additional storage, dual loading/
unloading racks, as well as a dedicated rail spur and railway access.
Total Makes Grease in Asia
French oil giant Total Lubricants opened a grease production plant in Tianjin, China, its first in the Asia-Pacific region and eighth grease production unit worldwide.
The facility cost 50 million yuan (U.S. $7.2 million) and has production capacity of 5,000 metric tons per year of lithium and lithium-complex grease for automotive and industrial applications, said Senior Vice President Francois Dehodencq. The plant sits on 7,336 square meters at the site of Totals largest blending plant in China, at the Tianjin Free Trade Zone.
China is the largest market for Total lubricants sales worldwide, noted Ting-wee Liang, president of Total (China) Investment Co. In 2015, Total combined its two lube businesses in China-Total Lubricants and Elf Lubricants-to create Total Lubricants China, which is headquartered in Beijing and has blending plants in Zhenjiang, Guangzhou, and Tianjin.
LSC Grows in Jamaica
Less than two years after opening its first blending plant in Jamaica, Lubricating Specialties Co. is continuing its expansion in the Caribbean island through an agreement to operate another plant near the capital city, Kingston.
The blending plant will have capacity to produce approximately 15 million gallons per year of automotive and industrial lubricants to be sold under local and international brands, LSC President and CEO Sydney Thwaites said. The facility will be ready to receive raw materials by vessel in the first quarter of 2017, which will also benefit LSCs first lube blending plant in May Pen, Clarendon parish, and begin blending and packaging in the second quarter, he added.
LSC Jamaica Ltd., a subsidiary of the Pico Rivera, California-based manufacturer, signed a long-term lease agreement for an undisclosed amount with Rubis Energy Jamaica for a blending plant located at Rubis fuel and chemical terminal in Rockfort. Rubis will not be involved in the operation of the facility, which belonged to Shell before it ceased manufacturing in Jamaica around 10 years ago.
CEP Plans Rerefinery in Saudi Arabia
Gulf Solvents of Saudi Arabia signed a contract with Chemical Engineering Partners to build a 155,000 metric tons per year rerefinery in Hail City, to produce API Group II and Group III base oils.
In a joint press release, the companies claimed the rerefinery will be the largest in the Middle East and the first in Saudi Arabia capable of making Group II and Group III stocks. The companies added that they will consider building other plants elsewhere in the country. CEP President and CEO Joshua Park said a start date has not been determined yet because the company is working on basic engineering and design first.
Gulf Solvents will contract with third-party used oil collectors in the country for feedstock, which is expected to come largely from sources such as quick lubes, and other parts of the Middle East, said Park. The company is a new venture formed for the purpose of building a rerefinery, and is not related to the United Arab Emirates chemicals distributor with a similar name.
Mol to Upgrade Production
Oil major Mol plans to upgrade its base oil plant in Szazhalombatta, Hungary, as part of a five-year, $1.9 billion capital investment program to expand its petrochemical business.
The Hungarian company is set to invest up to U.S. $130 million by 2021 to modernize its refineries in Slovakia and Hungary. Base oil is one of the attractive product segments we are looking into when building our non-fuel strategy, said Mol Group spokesperson Berzi Tamas. However, the exact details about investments in this segment and types of products are not defined yet.
Mol said it will improve its downstream program to take advantage of the growing demand for products such as lubricants, base oils and jet fuel.
Dutch Firm Blends in Rwanda
Netherlands-based VPS Lubricants will start blending lubes in Rwanda by first quarter 2017 in a 300 metric tons per year facility located in the countrys Free Trade Zone.
Erik Vermeer, commercial director for VPS International BV, said the plant is a joint venture between VPS and Societe Petroliere of Rwanda that will also serve regional markets in Congo, Zambia and Kenya. The semi-automated blending plant will be managed by a local entity, African Lubricant Manufacturing Co.
VPS has been active in Rwanda for 20 years, he added, and is looking to produce lubricants locally. He noted that the volume-based tariff in Rwanda is 10 percent for base oil and additives and 25 percent for finished products, which makes it attractive to blend lubricants in the country rather than import them.
Tianhe Gets All Clear
A forensic accountant hired to investigate questions about Tianhe Chemicals 2014 financial records found no fraud or accounting irregularities, the company reported.
The findings of Grant Thornton Advisory Services Ltd. seem to be a key step toward Tianhes efforts to reopen trading of its stock on the Hong Kong Stock Exchange, which has been halted for 19 months. The American accounting firms report followed an eight-month investigation into several questions raised both by Anonymous Analytics, an organization that accused Tianhe of fraud after its 2014 initial public stock offering, and Tianhes former auditor.
Investigation by the former auditor caused Tianhe to miss a March 2015 deadline for filing its 2014 results, triggering the halt in trading of Tianhes stock.
Briefly Noted
Shell Marine began stocking lubricants at additional ports worldwide, including 51 new locations in China, several depots in the Philippines and 16 hubs throughout all six Australian states.
Chevron U.S.A. Inc. will add a storage facility for API Group II base oils in Le Havre, France, through a regional affiliate, the oil giants fifth such supply hub in Europe for base oils.
Emersons Automation Solutions acquired FMC Technologies blending and transfer business unit in Chicago, as well as the units engineering and procurement office in Changshu, China.
Copec signed an agreement with ExxonMobil for development and distribution of Mobil lubricants in Colombia, Ecuador and Peru.
RelaDyne acquired the lubricants and commercial fuel divisions of Slidell Oil Co., a distributor with locations in Montgomery and Dempolis, Alabama.
Brenntag AG will buy the Indonesia and China distribution assets of Singapores EPChem Group, which makes liquid parrafins, paraffin waxes, petroleum jellies, white oils and other specialty chemicals.
Quaker Chemical acquired Canadian metalworking fluids manufacturer Lubricor for U.S. $11.8 million. Quaker will gain Lubricors facilities in Waterloo, Ontario, Canada, and Ramos Arizpe, Cohuilla, Mexico.
Nanotech Industrial Solutions named chemicals supplier Solvochem authorized distributor of its lubricant products in the Middle East and Africa.
Emery Oleochemicals opened a 4,800-square foot laboratory and technical offices in Monheim, Germany, to expand product and application development for its biobased lubricants business unit.
Viva Energy Australia opened a 3.2 million liter bulk lubricants storage terminal in Pinkenba, Brisbane, to distribute products in the states of Queensland and northern New South Wales.
Faces in the News
Heritage-Crystal Clean founder and CEO Joe Chalhoub announced his retirement after 17 years with the company, effective January 31. HCC Lead Director Brian Recatto will take his place.
Detrex Corp. made personnel changes after relocating its corporate headquarters from Southfield, Michigan, to subsidiary Elcos offices in Cleveland, Ohio. Bob Lunoe, Elcos vice president of finance, will also serve as vice president and treasurer of Detrex. John Hensien of law firm Clark Hill has been named corporate secretary for Detrex. Vice President, General Counsel and Secretary-Treasurer Bob Currie retired after 23 years with the company.
Ergon announced two new appointments to their executive team. Emmitte J. Haddox, who joined Ergon in 2010 as executive financial adviser, was named interim chief executive officer for the company. Jimmy A. Langdon was promoted to vice president and chief operating officer. Previously, he served as executive vice president in corporate operations and administration and has held numerous leadership positions within Ergon for 28 years.
Caroline Huot has been named global head of lubricants for Cockett Group. Huot has 20 years of experience in the downstream oil industry with a focus in lubricant trading, and will develop and manage Cocketts marine lubricants business while based in Singapore.
Total named Marco Pannunzio managing director of Total Romania, replacing Franck Haettel. Pannunzio has held several roles with the company, most recently general manager of marketing activities for Total in the Czech Republic, Slovakia and Hungary.