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Saudi’s base oil re-refiner YUNITCO to expand capacity

  • Märkte: Oil products
  • 30.06.25

Saudi base oil re-refiner YUNITCO's Yanbu plant will undergo maintenance in August-November as part of its plans to expand its capacity to 200,000 t/yr in December, up from the current 120,000 t/yr.

Each of the plant's three production trains will shut for around 45 days, the firm told Argus.

The plant produces re-refined Group I SN 150 and SN 300 base oils and will also produce re-refined SN 500 after the expansion.

The re-refiner is also studying further expansion to produce ultra-high viscosity grades, including re-refined Group I SN 900 and bright stock. Global supply of these heavy grades, especially bright stock, has been limited in recent years because of permanent Group I refinery closures.

Re-refining uses various processes to convert used oils back into base oils for use as feedstock in blending. Re-refined base oils are therefore more environmentally friendly, and demand has risen in recent years because of government regulations and companies placing more emphasis on environmental, social and governance (ESG) responsibilities.

YUNITCO currently uses distillation and solvent extraction processes. The company is building two hydrofinishing units and will convert the Yanbu plant to produce re-refined Group II/II+ base oils by hydrotreatment by December 2027.

This production shift also aligns with the wider industry's move towards using premium-grade base oils to produce high-performance lubricants, which in turn become used-oil feedstock for re-refining.

YUNITCO is also planning to expand into Egypt because of growing demand for base oils in Africa. The new plant in Cairo will have a capacity of 100,000 t/yr of re-refined Group I SN 150 and SN 500 by the end of 2027.

The proximity and connectivity between Egypt and Saudi Arabia through the Red Sea are other factors for the company's expansion, alongside rising base oil consumption.

Africa predominantly uses conventional-engine cars, unlike markets such as Europe and China where the market share of electric vehicles have risen in recent years. The company expects this trend in Africa to continue for the next 15-20 years, supporting demand for finished lubricants, especially monograde engine oils.


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