Petronas switches focus to Group III+ base oils

Malaysia's state-owned Petronas Lubricants International (PLI) is transitioning its base oils output to produce mostly Group III+ base oils instead of Group III base oils.

About half this year's output from the 300,000 t/yr base oil unit at parent company Petronas' Malacca refinery will be Group III+ base oils, which Petronas calls Etro+. About half the volume will be Group III base oils, known as Etro.

That share of Group III+ base oils will then rise steadily over the following years, although Petronas will continue to produce a small volume of Group III base oils.

The company had previously produced Group III base oils at the plant on the west coast of peninsular Malaysia, and Group III+ base oils on request.

The switch to focusing on Group III+ production followed a round of plant maintenance last year that included changing the unit's catalyst and then producing supplies with consistently stable specifications. It has lost some production yield because of the switch to Group III+. But it has added yield through efficiency gains, leaving the unit's production capacity steady this year.

Petronas is eyeing a range of expansion plans to increase output of Group III+ base oils using various types of feedstock. It plans to bring on line one such new unit within the next 2-3 years.

Petronas has secured some OEM approvals for its Group III+ supplies. It plans to secure the remaining approvals within the next two years.

About 10pc of the Group III+ supplies are expected to be used by its own downstream lube unit. The unit had previously consumed about 20pc of its Group III capacity.

It plans to market the remaining volume in all key markets. The plans include securing storage capacity in the US this year with the aim of boosting sales in that market. It had previously supplied the US from its storage tanks in Brazil.