Mississippi base oil plant to be operational by year's end: Chevron

18 September 2013 20:46  [Source: ICIS news]

HOUSTON (ICIS)--The US Group II base oil plant at Pascagoula, Mississippi, is targeted to enter mechanical operations at year's end, Chevron confirmed this week.

Chevron gave the following statement about the anticipated start-up of the 25,000 bbl/day Group II base oil production capacity plant, dubbed "PBOP" for Pascagoula Base Oils Plant: "We are targeting mechanical completion by year end. We will apply Chevron’s strict Operational Excellence standards and processes to help ensure we start the plant safely. We are committed to being a reliable partner, and we are working directly with customers using conservative timing to ensure we meet their needs.”

The US is becoming the primary production region for Group II base oils, gaining output prominence over traditional Group I production of the oils.

A main reason supporting more production of the Group II base stocks is the evolving slate of regulatory and environmental stipulations on vehicle motor oils.

The Group II lower-viscosity base oils are capable of assisting blender/compounders in manufacturing the lighter grades of motor oils needed to meet certain compliances. 

Prior to the addition of production barrels at PBOP, the US has approximately 107,600 bbl/day of premium grade Group II production capacity. After Pascagoula comes on-stream, the approximated total should be about 132,600 bbl/day.

US Group II suppliers last increased prices between July and August, mostly moving up by 10-25 cents/gal on the hikes, depending upon the producer and the base oil grade.

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By: Judith Taylor
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