Europe emission regs push demand for higher-quality base oils

18 February 2010 17:47  [Source: ICIS news]

LONDON (ICIS news)--Increased fuel economy requirements and changing emissions legislation in Europe are leading to increased demand for higher-quality base oils, an industry executive said on Thursday.

“All the changes to new cars resulting from emissions legislation addressing the EU's Euro 6 regulations to limit pollution invariably affect engines and the need for higher-quality finished lubricants,” Mike McCabe of Lubrizol said at the 14th ICIS World Base Oils & Lubricants Conference.

While Group I base oils made up 70% of European demand in 2008, that number was expected to decrease to 40% by 2012, McCabe said.

Meanwhile, Group III demand was expected to bypass Group II demand.

Group II base oils at just around 2% of European demand would slightly increase to more than 10% in 2012. Group III base oil demand would move from less than 30% of total demand in 2008 to more than 40% in 2012.

Asia produces the majority of Group III base oils and exports to US and Europe.

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By: Heather McGuire Doyle
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