Logistics, economics could stop GTL, CTL base oils units

19 February 2010 16:09  [Source: ICIS news]

LONDON (ICIS news)--Logistical challenges and weak economics could prevent base oils units being added to gas-to-liquids (GTL) and coal-to-liquids (CTL) refineries, Chevron's global marketing manager Brent Lok said on Friday.

Speaking at the 14th ICIS World Base Oils Conference, Lok said that base oils plants were being considered at GTL and CTL projects.

“In concept, all [GTL and CTL] plants can produce base oils with the right equipment,” said Lok, adding that most of these were in remote locations “far from ocean going bodies of water.”

He added that another issue, especially for CTL, was economies of scale.

“Modern base oils plants are typically large and you need that scale for the economics to work,” he said.

GTL technology is seen as a major development in the evolution of high quality base oils production, with plants able to produce the Group III products required by top-tier formulations in the automotive sector.

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By: Shelley Kerr
+44 20 8652 3214

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