03 December 2010 21:19 [Source: ICIS news]
NEW YORK (ICIS)--The start-up of two Group III base oil plants in the Middle East by 2014 will make Neste Oil a global player in the market, a company executive said on Friday.
Neste’s joint venture with the Bahrain Petroleum Co (Bapco) will build a plant that is expected to come on stream in the autumn of 2011. Neste will market all of the plant’s annual output, estimated to be at least 400,000 tonnes, said Neste ’s head of sales, Alejandra Zarate de Noren.
Zorn made her comments the 6th annual ICIS Pan-American Base Oils Conference.
Another plant, due on stream in 2014, will be in Abu Dhabi, and it will have a capacity of 500,000 tonne/year. It will be operated by a joint venture made up of Neste and Takreer.
The new Middle Eastern capacity will bring the company closer to markets in Asia which are still growing, unlike the US and European markets, Noren said.
Noren said annual technical demand for Group III base oils was 1.7m tonnes in 2010 and would reach 2.6m tonnes in 2015. By 2020, technical demand, which she distinguished from commercial demand, would reach 4.7m tonnes.
Neste already produces Group III base oils at a 250,000-tonne/year plant in Porvoo, Finland.
The conference concluded on Friday.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections