ExxonMobil to bring ‘workhorse’ base oils to Europe – exec

Interview story by Judith Taylor

LONDON (ICIS)–ExxonMobil’s desire to bring Group II base stocks closer to their European customers was just one reason for the producer’s plans to bring production to its Rotterdam facility, an executive with the company said this week at the ICIS World Base Oils Conference.

The reasons for building a Group II base oil plant in Europe were explained by Ted Walko, ExxonMobil Basestocks and Specialties Marketing Manager.

“We consider Group II base oils to be the workhorse base stock for the industry,” Walko said.

But with Group II shipments from the US Gulf helping to meet European requirements and Group III base stocks gaining a foothold in blending needs, there were further explanations for ExxonMobil’s choice to invest about $1bn into a Group II base oil production facility located at Rotterdam.

One reason was to assist European markets in benefitting from the logistics of having a Group II base oil plant in a local position.

“We wanted to get Group II close to our customers,” Walko said.

Another reason is that workhorse position held by Group II base oils.

“Group II is designed to meet broad specification requirements,” Walko said.

The breadth of Group II base stock abilities to cover the needs of the widest array of specifications and physical performance capabilities for lubricants is a key factor in the evolving complexity of today’s lubricant formulations, according to a number of industry participants.

Another factor upholding the Rotterdam base oil project is that now is the time to blend with Group II base oils, Walko said. He pointed out that getting the right base stock for new formulations that meet the needs of lubricant products in 2017 and forward is a primary driver for the blenders.

Walko said that the Rotterdam refinery is already one of the company’s most efficient in Europe and that the addition of the base oil production unit will add to that efficiency.

The scale and logistics make Rotterdam a key location in Europe, and the base oil facility will be the first large scale Group II production in Europe.

Construction of the Rotterdam base oil facility is on schedule to complete in late 2018, according to ExxonMobil.

At present, there is essentially no Group II base oil production in Europe.

The 21st ICIS World Base Oils conference ends on Friday in London.

Follow Judith on Twitter