25 February 2011 12:40 [Source: ICIS news]
LONDON (ICIS)--Large refiners are looking at having multiple locations for base oil plants as original equipment manufacturers (OEMs) spread across the globe, an industry expert said on Friday.
“Engine manufacturers want global lubricant formulations to meet global emissions standards, engine platforms and specifications, and that is leading major oil companies to move to global availability of base stocks from multiple plants,” said Chevron's Tom Kovar.
Kovar was speaking at the 15th ICIS World Base Oils & Lubricants Conference in ?xml:namespace>
Major global suppliers include ExxonMobil,
Regional fuel demand dictates the type of base oil production - Group I, II or III - but demand for all groups is growing in each region.
“Group II is produced using vacuum gas oil (VGO) in a dedicated hydrocracker so best suited in regions where this is large gasoline demand,” Kovar said.
“Group III is produced by using unconverted oil from a two-stage diesel hydrocracker and best suited in regions where there are large diesel hydrocrackers,” said Kovar.
Group I producers remain the core suppliers in
The two-day conference ends on Friday.
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