SK Lubricants looking to expand Spain, Indonesia base oils plants

Source: ICIS News

2019/02/22

LONDON (ICIS)--SK Lubricants is planning to expand its Spanish and Indonesian base oils plants, the global technical manager of the South Korea-based base oils producer said on Friday.

“We’re currently looking to expand capacity in [Spanish plant] Ilboc and also Dumai [Indonesia]. Talks are in the very early stage of us developing a new base oils plant,” Nick Clague told delegates at an industry event.

Clague did not disclose a precise timeline for the project, or whether a final investment decision (FID) had been made.

The Spanish plant’s current capacity is 13,300 bpd, according to ICIS data.

Debottlenecking at the joint-venture plant in Cartagena (SK is the bigger partner in a 70:30 split with Spanish refiner Repsol) will cater to increasing demand of the firm’s Yubase customers, it is understood.

It could mean that fewer imports would come from the major Group III producer’s Korean plant in Ulsan, though some industry estimates are optimistic for the growth of Group III consumption in Europe.

Clague was speaking at the 23rd ICIS World Base Oils & Lubricants Conference running in from London 20-22 February.