Petronas 'has no plans' to up China Group III base oils supply

13 September 2010 11:08  [Source: ICIS news]

SHANGHAI (ICIS)--Malaysia’s Petronas Base Oils has no plans to increase supply of Group III base oils to China, despite booming demand there, because of limited feedstock availability, a company executive said on Monday.

China’s demand was expected to rise three-fold by 2015, but the company would not be expanding capacity to meet this, Joe Rousmaniere, CEO of the Petronas subsidiary, told ICIS.

Current demand for Group III base oils in China is estimated at 160,000 tonnes/year, according to industry sources.

Petronas owns a 300,000 tonne/year Group III base oils refinery in Malaysia, with all material being supplied to long-term contract clients in Asia, Europe, South America and Africa, he told ICIS.

Petronas is a global company and would not cut supply to other markets in order to deliver more output to China, he added.

Rousmaniere said that he was not worried about its Asian rivals attempting to increase their supply to China by expanding their capacities, saying Petronas would focus on its brand and would also place high importance on quality above quantity.

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By: Shirley Xu

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