LNG Sept2009
LNG Sept2009
LNG Sept2009
Africas Thirst
for Mining Lubes
Changes Loom
for Engine Oils
publishers letter
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End users, 6%
Additive
suppliers, 10
Base oil
suppliers, 4%
Europe, 75%
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marketers, 57%
Middle
East, 11%
Testing,
equipment, packaging
& others, 23%
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Managing Editor
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Phone: +1 540-837-2877
[email protected]
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www.aliasgraphix.ch
Circulation Manager
Deborah Wessmiller
Contributing Editors
Ray Masson, David Ray, Scott Gould,
Lisa Tocci, Mark T. Townsend, George Gill,
Olaolu Olusina
Rest of world, 2%
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Nancy J. DeMarco
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LubesnGreases Europe Middle East Africa (ISSN1935-8490) is
an independent trade magazine, published bimonthly by LNG Publishing
Co., Inc., 6105-G Arlington Blvd., Falls
Church, VA 22044, USA.
Europe
Middle East
Africa
September/October 2009
Number 15
Table of contents
Features
18
Remaking Petromin
Saudi Arabias largest lubricant supplier has two new co-owners, a leaner structure
and a strategy that calls for increased sales in other countries. The company is also
preparing to conduct its initial public stock offering.
26
Page 18
34
38
Page 26
Departments
Page 38
3 Publishers Letter
44 Newsmakers
6 Transportation Trends
48 Product News
10 Marketing Matters
49 Advertisers Index
50 Last Word
24 Industry Calendar
By David Ray
transportation trends
A few car models, however, have incorporated engine designs that were
similar to motorcycles. In the late 1950s
and early 1960s, Austin/Morris (later to
become British Leyland) and Peugeot
wanted to make shorter vehicles. They
turned engines sideways so cylinders ran
transversely across the
vehicle, instead of front
to back. This allowed
a much shorter bonnet
(or hood) section, but it
eliminated space for the
gearbox. Designers put
the gearbox under the
engine and had them
share the same lubricant.
While working on
my bike, I recalled that
lubrication issues had
arisen in vehicles with
transverse engines. In
the 1970s, the Peugot
204 was used for shear
stability engine tests.
Its gearbox chopped up (or sheared) viscosity index improvers so quickly that
20W-50 oils were converted to 20W-25
in less than 50 hours.
Internal combustion engines and
gearboxes also have different friction
needs. In an engine, the lubricant is sup-
SG to SM
GF-1, GF-2, GF-3
A/B, C2, C3
Eliminated
Allowed if stay-in-grade
0.08 0.12 percent by weight
MA2, MA1, MA, MB
transportation trends
Standardization and Approval Committee) and ACEA (the European Automobile Manufacturers Association). Friction performance is divided into four
categories: MA2, MA1, MA and MB.
Clearly there is a belief within JASO
that wet clutches create specific friction
needs in motorcycle oils.
Still uncertain about what oil I should
use in my bike, I resorted once more to
the Internet. A number of companies specialize in motorcycle oils, and I checked
MA2
MA1
MA
MB
By Scott Gould
Marketing Matters
Marketing Matters
Road to Recovery
By Ray Masson
their counterparts within the oil majors, due to lower overheads and overall
costs.
Some traders have special relationships with certain producers, gaining
exclusive position when it comes to releasing that refiners barrels. Such an arrangement benefits the producer by attracting receivers to this supply source.
There are specialist traders who focus
on one geographical area, for example
Nigeria, or perhaps one type of base
oil, such as naphthenics, or base stocks
being used transformer oils. One trading company carries expertise solely in
white oils.
When lubricant blenders use traders
they are essentially outsourcing all or
most of the activities associated with
purchasing at least for that transaction. The close relationships between
traders and receivers are cultured and
nurtured, since both parties see potential gain coming from that relationship.
Use of traders and brokers may temporarily subside from time to time, for example if a refiner decides for a time to
increase its direct sales. Balanced against
this, however, will always be a desire to
increase netback value at the refinery
gate, without additional overheads of
marketing and ancillary costs.
The author is biased, of course, but believes the latter desire will win out in
the long run, at least for a portion of
base oil trade. If so, the market should
continue to have a place for traders for
some time to come.
Remaking Petromin
New Owners Restructure
Saudi Blender
Filling line at Petromins blending plant in Jeddah, Saudi Arabia. It is adjacent to a fuel refinery and the Luberef
base oil plant (inset), which supplies base oils to Petromin.
18 | LnG | Europe Middle East Africa | September/October 2009
By Mark T. Townsend
group and a lubricant marketer with Indian roots. The transition required first a switch
from state control to the private sector and then the integration of two fundamentally
different business cultures.
But management says it now
has a streamlined structure
and revamped strategy needed to become a dynamic force
in the market.
Samir M. Nawar
Sajid Saeed
Saudi Arabias
Biggest Lubricant
Suppliers
Total: 350,000 t/y
Company Market Share
Petromin
27 %
Fuchs
25 %
Shell
19 %
Mobil
15 %
Gulf
8%
Others
6%
Source: Petromin Oils
remaking petromin
remaking petromin
and the minimum API requirements set by the Saudi government: API SH for
passenger cars that run on
gasoline; and API CF-4 for
heavy-duty diesel trucks.
We are not at the top end of
the specs in the car market,
Saeed said.
Like many other markets,
Saudi Arabia faces the challenge of substandard and
fake lubricants. Does it represent 5 percent or 20 percent of the total market we
dont know, but it is definitely significant and poses a
challenge, Nawar stated. He
added that the Ministry of
The company
has to be ready
[for a stock offering],
but also the market
has to be ready.
Sajid Saeed, Petromin
The Jeddah blending plant is undergoing an upgrade which will expand its capacity to 250,000 t/y.
Continued on page 24
remaking petromin
industry CALENDAR
October 2009
November 2009
13-14. 6th ICIS Middle Eastern Base Oils and Lubricants Conference, Grand Hyatt Hotel, Dubai. Contact: Siobhan Abbott,
Events Registration, ICIS, Quadrant House, Sutton, Surrey,
SM2 5AS, UK.
11-12. 5th International Conference Lubricants Russia 2009, Renaissance Hotel, Moscow. Contact: RPI, Krasnopresnenskaya nab.,
12, Suite 1406A, World Trade Center, Moscow 123610 Russia.
20-22. International Trade Fair for Corrosion Protection, Preservation and Packaging, Exhibition Centre Stuttgart, Stuttgart, Germany. Contact: Hartmut Herdin, Managing Director,
fairXperts GmbH, Hauptstrasse 7, 72639 Neuffen, Germany.
Phone: +49 (0) 7025 8434 0 E-mail: [email protected]
Web: www.corosave.com
22-23. UEIL Congress 2009, Hilton Istanbul, Istanbul. Contact: Independent Union of the European Lubricants Industry, c/o Interel, Rue du Luxembourg, 22-24, B-1000 Brussels,
Belgium.
Phone: +32 2 761 66 85 E-mail: [email protected] Web: www.ueil.org
24 | LnG | Europe Middle East Africa | September/October 2009
13-14. 2008 International Lubricants & Waxes Meeting, Houston Marriott Westchase, Houston. Contact: National Petrochemical & Refiners Association, 1667 K Street, NW, Suite
700, Washington, D.C. 20006 USA.
Phone: +1 202 457 0480 E-mail: [email protected] Web: www.npra.org
January 2010
19-21. 17th International Colloquium Tribology, Technische
Akademie Esslingen, Ostfildern, Germany. Technische Akademie Esslingen, An der Akademie 5, 73760 Ostfildern, Germany.
Phone: +49 711 3 40 08-0 E-mail: [email protected] Web: www.tae.de/de/kolloquien-symposien/17th-international-colloquium-tribology.html
By Tim Sullivan
More
Changes
Loom for
Engine Oils
CO2 Mandates
Challenge
Automakers,
Lube Formulators
British engineering and consulting firm, a growing movement to improve fuel economy
will spur a wide range of engine adaptations in coming
years, and these once again
will impact the oils that lubricate those engines. Ricardo
UK Ltd., a unit of Ricardo plc,
predicts that oils will see further viscosity reductions, that
they will encounter greater
demands for oxidative stability and that they will need to
be compatible with a variety
of new materials.
In a few locations within
engines, the oils job may become somewhat easier as design changes contribute to
wear protection. But these
will be outnumbered by the
ways in which lubrication
ity. Specifically, they predicted that OEMs will lower minimum thresholds for
HTHS high-temperature/
high-shear viscosity, a gauge
of an oils tendency to flow
between the small spaces
that separate rapidly moving
engine parts. Such behavior
avoids wear by preventing
metal surfaces from touching, but it also exerts drag
on moving parts. Some industry insiders have already
raised concerns that viscosity levels are approaching the
point where engine protection would be compromised.
But Goodfellow said viscosity levels for the industry as a
whole will continue falling.
Whilst there is a range
of viscosities in the marketplace today, there is focus on
further reductions, he said.
The future is likely to bring
thinner lubricants to the
market for both light-duty
and heavy-duty segments.
Catching a Break
on Wear
The good news is that automakers may make other modifications that reduce needs
for wear protection. Certain
OEMs have already begun
to coat key wear sensitive
components, such as sliding
valvetrain parts, with ultrathin layers of materials that
are hard enough to provide
extra wear resistance. These
coatings also have physical
characteristics sometimes
due to treatment or method
of application that reduce
friction. Less friction contributes directly to improved
fuel economy, while better
wear resistance allows other
changes, such as downsizing
engines which increases
loads on certain parts and
reducing oil viscosity.
achieved by a combination of
base stock choice and pourpoint depressants. But cold
starting needs in cold climates
can be difficult to satisfy.
Challenges Aplenty
250
UNITED S TATES
C ALIFORNIA
S. K OREA
AUSTRALIA
C HINA
E UROPEAN UNION
JAPAN
I NDIA
230
210
190
170
150
130
110
90
2002
2004
2006
2008
2010
2012
Year
Source: ICCT
30 | LnG | Europe Middle East Africa | September/October 2009
2014
2016
2018
2020
2022
Piston Chambers:
Room to Improve
Machining Deviations
Assembly Distortions
Distortions
of Fired Engine
Operating temperatures can cause
thermal distortions.
Africas Mines
Mean Business
Lube Demand Grows Despite Recession
By Olaolu Olusina
Mining Mania
Pit or Tunnel
Should shaft mining operations revert to the old conventional methods which are
more labour intensive then
one would see a swing back
to higher grease consumptions due to winches and rock
drills being reintroduced on a
bigger scale.
Although mines typically
use multiple suppliers, most
link fuel and lubricant purchases, giving advantage
to international oil majors.
Sources said most of the leading players are indeed big oil
companies. Shell controls approximately 60 percent of the
market in West Africa, according to Emmanel Dadson,
a former lubrication specialist with a multinational oil
Quality Rising
By Lisa Tocci
Environmental Issues
Propel Greases
hat makes a
lubricating
grease better for the
environment? For some, its
simply a grease thats rapidly biodegradable, with no
toxic effects. Many will insist on a grease made with
a high amount of renewable
content. Some advocate a
cleaner, safer work place and
less exposure to harmful ingredients or processes. And
others will point to longerlasting greases that extend
equipment life and reduce
the waste of frequent relubrication.
All these factions were
present at the European Lubricating Grease Institutes
annual general meeting in
late April in Gothenburg,
Sweden, putting forth arguments and ideas for making
greases healthier, stronger
and more environmentally
acceptable.
Alan Begg, senior vice president of SKF Group, which
is headquartered in Gothenburg, pointed out that about
80 to 90 percent of all rolling
element bearings are greaselubricated. Grease dominates
the service life of bearings and
Continued on page 42
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newsmakers
Newsmakers
2008 GREASE PRODUCTION, BY THICKENER
Worldwide:
1.02 billion kg
Europe:
212 million kg
Calcium, 11%
Calcium, 15%
Aluminum, 4%
Aluminum, 6%
Other, 9%
Polyurea, 4%
Lithium,
73%
Other, 8%
Calcium, 31%
Lithium,
57%
Lithium,
68%
Polyurea, 3%
Other, 1%
Organophilic Clay, 3%
Other Metallic, 5%
Sodium, 3%
rosion inhibitors and pour-point depressants. Its process and lubricant additives
business fell under a plastic additives
segment, which is being integrated into
BASFs performance chemicals division.
Ciba had 55 production sites. BASF
plans to decide by the first quarter of
next year what to do with the 23 that
are up for disposition. Ciba also had
70 sales and administrative offices, 36
of which are to be consolidated by the
end of 2010. Job cuts are scheduled to be
completed by 2013, though most would
take effect by the end of next year.
newsmakers
newsmakers
The project is expected to cost between U.S. $400 million and $450 million. Last year the partners awarded a
$314 million contract to Samsung Engineering for engineering, procurement
and construction.
S.K. Lee
newsmakers
Oil products supplier Hocem has begun carrying API Group II and III base
stocks, adding to the Group I stocks
that it carried in the past. The company,
which is based in Hamburg, Germany,
said its base stocks can be delivered to
customers around the world by transhipment through ports in the Baltic
and Black seas.
The expansion of the base stock portfolio comes after the company began
distributing slack wax and paraffin wax
last year. Hocem, formally known as
Haase Oil Chemical GmbH, operates
chemical tank terminals in Antwerp
and in Eastham, U.K. The company did
not disclose the source of its Group II
and III base oils.
Polartech Ltd. in June appointed Barry Smith to be its chief executive officer. Smith has more than 20 years of
experience in the industrial lubricants
sector and comes to his new post from
Castrol, where he was marketing and
technology director for industrial lubricants and services.
Polartech is based in Manchester,
U.K., and markets metalworking fluids,
as well as additives and additive packages for metalworking fluids.
Croda International announced in August that it will close a Wilton, U.K., plant
that makes esters and polyalkylene glycols. The company attributed its decision
to a recent announcement that Dow will
close a plant that provides feedstock.
Dows facility is located nearby and
produces ethylene oxide and glycol. It is
slated to close in January, and the Croda
plant will close the same month. The
Croda plant employs 125 people.
Esters and PAGs are both used as synthetic lubricant base stocks. Croda said
the closure will cost it 13 million while
allowing a write-off of 5 million.
E-mail company news and personnel
announcements to [email protected],
or fax to +1 703 536 0803.
LnG | Europe Middle East Africa | September/October 2009 | 47
product news
Product news
How to Decide about Biocides
Deciding on the appropriate concentration of biocide to use in metalworking fluids and other lubricants can be
challenging because of the balancing
act between cost effectiveness and the
need to prevent biofouling and microbial contamination. Taunovate II testing from Dow Biocides tests for a wide
variety of anaerobic bacteria, making it
easier to determine the type and amount
of biocide needed.
The test can reduce costs for machinist that may unnecessarily be using too
much biocide. On the other hand, it may
lead to increased effectiveness of biocides
for those that may be using too little.
www.dowbiocides.com
Becrosan is Boron-free
Advertisers INDEX
Company
Page
ABB
21
Afton Chemical
31
Alhamrani Fuchs Petroleum
13
ChemTech
47
Chevron
29
Chevron Oronite
inside back cover
Chevron Phillips
8
Ciba
17
Ergon
inside front cover
ExxonMobil Chemical
5
ExxonMobiil Research & Engineering
23
Infineum
37
Inolex
12
InS Services (UK) Ltd.
49
International Colloquium on Tribology 41
Lub<>Line
12
Lubrizol
back cover
LubesnGreases
25
LubesnGreases
Europe Middle East Africa
42, 45
Nynas
11
Petronas
33
Prista Oil
9
Qatar Lubricants
16
Rhein Chemie
15
S-Oil
7
Soltex
47
Universal Lubricants
43
Wolf Lake Terminals
42
By Tim Sullivan
last word
Basra refinery
As the war in Iraq winds down, Iraqis are trying to revive their crippled oil
industry. Among the operations that
are underperforming are base oil plants
that in the past made it a major supplier
in the region. An industry analyst says
the country could return to that status.
But it must clear mechanical and political hurdles first.
Iraq has base oil plants in Baiji, Daura and Basra, with nameplate capacities
of 250,000 metric tons per year, 120,000
t/y and 100,000 t/y, according to Saadalla
Al-Fathi, a consultant with Dome International LLC, a Dubai-based supplier of
equipment and services for the petroleum
industry. He is scheduled to present a paper about Iraqs base oil market in October at the ICIS Middle Eastern Base Oils
and Lubricants Conference in Dubai.
The base oil plants operate far below
their capacity, Al-Fathi said, but the reasons have less to do with the most recent war than with events that preceded
it. The plants were damaged during the
1990-1991 Gulf War but were largely repaired. It was after that war that their
output and status really began to decline.
The operator the national Oil Refineries Administration was unable to obtain chemicals and spare parts, Al-Fathi
said, due to sanctions that the United
Nations imposed on Saddam Husseins
government. By 2002 the plants together
were producing approximately 200,000
t/y around 40 percent of capacity.
Al-Fathi said production continued to
fall after the U.S.-led invasion the following year, though it is not clear why.
The war in 2003 did not cause any new
damage directly to the lube oil plants,
he said. But in the chaos and instability that prevailed since then, production
has taken a dive for unclear reasons. Production is probably close to 15 percent of
nameplate capacity. This has opened the
door for the private sector to fill the gap
by imports of unsecured qualities.
Al-Fathi suggested it is within Iraqs
reach to restore its base oil plants to former levels of operation.