14 February 2007 16:51 [Source: ICIS news]
LONDON (ICIS news)--With construction costs rising and contract crews being in short supply because of too many ongoing petrochemical projects, some of the new base oils refineries expected to start up in Asia in 2008 are facing delays of up to two to three years, according to an industry expert from Asia.
“Many of us in the market were expecting a base oils tsunami in ?xml:namespace>
More than 61,000 bbl/day of new capacities in Group II and Group III base oils were slated to come up in 2008 in
If the projected capacities were to come on stream as slated, that would have put tremendous downward pressure on the market and would have led to the closure of many Group I plants around the world, Mr Rousmaniere said. However, “it appears this may not happen in 2008”, he added.
With major global automobile manufacturers like Mercedes Benz, Ford and
Among the new projects is Petronas’ 6,500bbl/day Group III project, which was on schedule for starting up in May 2008, the Malaysian company’s base oils chief said.
The Melaka Group III project, which is being undertaken in collaboration with process technology licensor Exxon Mobil Research Company, will produce two top-tier base oils under the brand names of Etro-4 and Etro-6 when completed.
Mr Rousmaniere, formerly general manager of global base oils player Lithcon, said manufacturers were still enjoying good profit margins even at the presently depressed market levels.
“The base oils supply constraints in the
Mr Rousmaniere is in
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