08 June 2010 17:06 [Source: ICIS news]
HOUSTON (ICIS news)--Chevron has put its base oil customers on allocation globally for its light and mid-viscosity grades produced at its Richmond refinery in California as a result of production shortages, a company spokesman said on Tuesday.
“Due to a temporary reduction in base oil production capacity at our Richmond Lube Oil Plant (RLOP), we are experiencing production shortages and higher than typical aromatic content of the following products: 100R, 220R, and 110RLV. 600R is not affected,” Chevron spokesperson Gustavo Santoyo said. “In mid-May, we informed our base oil customers about the aromatic content.”
Chevron established sales allocations to 75% on the RLOP 100R, 110RLV and 220R products for base oil customers globally effective on 1 June.
“The allocation is calculated as 75% of the customer’s historical average demand pull from 1 May, 2009 to 30 April, 2010,” Santoyo said.
Chevron’s global base oil supply capacity would be affected from July to December, according to Santoyo.
“This is a temporary condition, and we expect RLOP to return to full capability by the middle of the fourth quarter,” Santoyo said.
Group II base oil supply in the
Motiva would not comment on the status of the move, but its consumers said the allocation was ongoing.
“The Motiva allocation was increased to 75% of historical purchases last week, but the time frame is still uncertain,” a base oil buyer said.
Base oils are used in the formulation of lubricants across a broad spectrum of applications, from automotive engine oils to industrial and process oils.
($1 = €0.84)
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