For the first time, API Group II base oil capacity has surpassed Group I capacity. This should surprise no one whos been keeping up with global base oil developments, and especially not LubesnGreases readers!
According to the 2019 edition of LubesnGreases Global Guide to Base Oil Refining, overall capacity now exceeds 1.2 million barrels per day worldwide. Forty percent of that is Group II, 37 percent is Group I, Group III reached 14 percent and naphthenics account for 9 percent.
Asia-Pacific has been particularly busy. In the past year, 64,000 b/d of new capacity has opened in the region, including six new plants. Hyundai OilBank-Shells Daesan, South Korea, refinery opened an additional 12,000 b/d of Group II capacity in August. China added a whopping 33,800 b/d of Group II and 18,200 b/d of Group III. (Read more about the Chinese base oil market on Page 44.)
What does this steadily increasing supply of base stocks mean for the overall lubricants industry? Well have plenty of news and analysis over the coming year. In the meantime, keeping a copy of the 2019 Guide at your fingertips is a quick and easy way to see the big picture. Its included with this issue for print subscribers and will be mailed to digital subscribers in the U.S. and Canada. Copies can be ordered at www.BaseStockGuides.com.
Managing editor Michele Persaud has once again masterfully executed the collection, vetting and organization of this data. Her diligence produces an invaluable resource for our industry.
Howard Briskin
HBriskin@LubesnGreases.com