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HF Sinclair, SK Enmove partner on base oil supply

  • Märkte: Oil products
  • 03.08.26

South Korean refiner SK Enmove and US energy company HF Sinclair's Lubricants and Specialties segment announced today strategic agreements to supply Group III base oils to North America.

SK Enmove will deliver Group III base oils to HF Sinclair's Lubricants and Specialties segment under a multi-year arrangement, although volumes were not disclosed. HF Sinclair's Lubricants and Specialties segment will also be SK Enmove's exclusive distributor for its key markets in North America. SK Enmove operates as a company-in-company under SK On.

The partnership aims to strengthen HF Sinclair's Lubricants and Specialties' supply chain resilience and drive SK Enmove's growth in the North American market, by leveraging the former's sales and logistics network and the latter's consistent supply of premium base oils.

The partnership follows HF Sinclair's 28 July announcement of plans to separate its Lubricants and Specialties segment through the creation of an independent, publicly traded company.

The company will also retire a substantial portion of its 15,600 b/d Group II/III base oil unit in Ontario, Canada by 2027, and tap on another global producer for Group II supplies.

The plant closure is set to squeeze Group III supply availability in a region that is already reliant on overseas supply. According to Argus' base oil supply index, Group III accounted for only 4pc of the region's base oils nameplate production capacity in 2025. While several plants have sought to maximise Group III output, the region remains a net importer because of a significant yield drop resulting from more severe hydrocracking.

But it will also coincide with the start-up of two new Group III plants in the US. Chevron is scheduled to start its Group III unit in Pascagoula, US from the fourth quarter of 2026. ExxonMobil's 400,000 t/yr Group III plant in Baytown, US, will begin production in 2028.


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