27 June 2012 07:42 [Source: ICIS news]
Correction: In the ICIS story headlined "?xml:namespace>
The move comes as suppliers in the Middle East gear up for a boost in demand for Group III base oils, with a 16% increase in capacity expected to come online by 2017 compared with 2011, said Blake Eskew, vice president of consulting firm Purvin & Gertz.
Eskew was speaking at the 6th ICIS Base Oil & Lubricants conference held in
"A lot of the new capacity that is coming online, mainly in Asia and the
"These include favourable feedstock that can be found within the supplying region or processing investments to capture additional value," Eskew added.
According to Eskew, around 48% of the new capacities globally are opportunistically driven. Of this, 60% is targeted at the production of Group III base oils.
"Asia, and especially the
Just under 3m tonnes of new capacity will come from the
"Demand for base oils in the region will be low, but its capacity growth is enormous," Eskew said, adding that mature markets such as Europe will become net importers by 2020 when new supply comes from the
This is because Group III material is in demand for use in passenger vehicles in Europe, the
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|