LONDON (ICIS)--ExxonMobil is expanding its storage facilities, with the new terminal in Valencia, Spain now operational, according to Sylvie Houry, ExxonMobil’s global market development manager for base stocks and specialities on Thursday.
The terminal offers Group I and Group II products and is part of ExxonMobil’s long-term plan to expand its base oils supply network.
“Another terminal in Hamburg is in the pipeline and should be operational at the end of summer,” Houry added.
“We have high commitment to supply Group I for the longterm,” Houry said, adding that Group II will become “the heart of the market”.
That said, Houry conceded that there would be significant worldwide rationalisation of Group I capacity beyond 2020, with the IMO 2020 low sulphur regulations for the shipping industry complicating the outlook for Group I.
The base oils market needs to be more agile, anticipate changes and react to them, Houry stressed.
“Companies need the ability to manage high complexity and cater to individual markets which have diverse needs,” she said.