Motiva base oil allocation intensifies US supply crunch

25 March 2011 21:35  [Source: ICIS news]

HOUSTON (ICIS)--US Group II base oil producer Motiva’s allocation intensified an ongoing supply crunch, pushing buyers to look for alternative blend substitutions in Group I material, particularly 150-viscosity, buyers said on Friday.

Motiva’s allocation could extend at least for 30-45 days, squelching as much as 15,000 bbl/day of production output from the market, a buyer said.

Motiva has been on 80% allocation since mid-March after a production interruption at its Port Arthur facility in Texas, according to sources.

Adding to the curtailment, the producer is also entering preparatory stages ahead of a planned turnaround at one of its three units in late May.

Production difficulties were encountered earlier this year at Motiva’s 40,300 bbl/year Group II base oils capacity at its Port Arthur refinery, but were resolved about a month ago, according to industry participants.

The company was not immediately available for comment.

Motiva is the largest US producer of Group II and II+ base stocks.

By: Judith Taylor
+1 713 525 2653

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