Fuels & Lubes International 1996 – Issue #1

2nd Annual Fuels & Lubes Asia Conference opens in Singapore
SINGAPORE—The 2nd Annual Fuels & Lubes Asia Conference opens in Singapore January 29, where Asian markets, fuels and lubricants quality issues in Asia and technical developments will be discussed during the three-day meeting.

Fuchs projects 1.4% lube demand growth
OSTFILDERN, Germany—Worldwide lubricant demand will not grow as robustly as the global economy, forecasts Manfred Fuchs, chairman of the board of Fuchs Petrolub AG Oel + Chemie, in Mannheim, Germany. He estimated that annual lubricant demand will grow 1.4 percent, while the word economy grows an average 3.8 percent per year.

VW urges improved lubricity property in Canadian diesel fuels
TORONTO, Canada—At a special meeting of the Canadian General Specifications Board Diesel Fuels Task Force (CGSB T/F) held here on December 14, representatives from Volkswagen AG Germany, Bosch AG Germany and VW North America made a strong case for an immediate improvement in the lubricity performance of Canadian diesel fuels. Representatives from Stanadyne, General Motors Powertrain USA and General Motors Canada supported their position.

Sale of Albemarle’s olefin business expected this quarter
Albemarle Corp. expects to complete the sale of its linear alpha olefin (LAO), polyalpha olefin (PAO) and synthetic alcohol business to Amoco Chemical Co. this quarter, according to Rudi Demeuse, general manager of olefins and derivatives at Albemarle Corp., in Baton Rouge, La.

Special Report
Global base oil and lubricant outlook:
For the past several years, overall base oil demand on a volume basis has been relatively stagnant. Significant growth in demand has taken place in Asia, a contraction has occurred in Western Europe, there is small growth in North America and a large reduction in demand in the former Soviet Union.

N. America: Players positioning to produce oils to stricter specs:
Despite an existing oversupply, more than 20,000 barrels per day (bpd) of base oil capacity will be added in North America by the end of this year. Some base oil manufacturers are adding capacity to produce higher quality base oils.

Base oil producers positioning for future tighter lube specs:
These three plants have one thing in common. They all will have the capability to produce high quality base stocks, specifically unconventional base oils (UCBO). with a viscosity index of 125 and 150. Generally UCBOs have VIs higher than 115.

Japanese engine oil trends:
Japanese engine oil standards have largely conformed to those of the U.S., although added requirements are commonly imposed by Japanese automakers.

Fuel issues in Indonesia:
Indonesia has been experiencing very rapid economic growth for some years with a resulting rapid increase in fuel demand (growing at five to six percent a year). Pertamina has long held a monopoly in the petroleum sector, but is being severely tested in meeting expanding demand. The result is that opening of the downstream petroleum sector to private investment is being undertaken.

The Swedish experience with very low-sulfur diesel fuels:
After the introduction of very low-sulfur diesel fuels for emissions reduction, vehicles in Sweden experienced injector pump wear similar to that reported by Ronald Tharby in Canada.

Maximum possible performance vs. minimum specification:
Rapid change in performance requirements of fuels and lubricants and international harmonization standards are both central issues in our industry today.

Hong Kong adopts two-step approach to reduce emissions:
At the 2nd Annual Fuels and Lubes Asia Conference in Singapore, Hong Kong’s Secretary of Planning, Environment and Lands, Bowen Leung, described Hong Kong’s bold innovation to sharply reduce atmospheric pollution. Over five years, Hong will phase out the use of light- and medium-diesel vehicles in order to reduce particulates and nitrogen oxides (NOx) emissions.

Lube Tech Report
Soot accumulation in diesel engine oils: A review of reports from Japan and Singapore:
Diesel engine design changes which were made to reduce emissions and to improve fuel economy are creating a problem of soot accumulation in engine oil. A series of papers presented at the International Tribology Conference (ITC) in Yokohama, Japan, last November, and at the 2nd Annual Fuels & Lubes Asia Conference in Singapore this month reported on recent developments in understanding increased soot accumulation in modern diesel engines.

Fuel Tech Report
WTO Panel: U.S. rules discriminate against gasoline imports:
The United States unfairly favored domestic refiners and its reformulated gasoline regulations were discriminatory against imports, a panel of the World Trade Organization (WTO) ruled recently.

Country Report
China, Part II: Lubricant production by Chen Aizhu, China OGP:
This is part two of a four-part series on the lubricants sector in China. In this issue, the focus is on lubricant production. Part III will discuss the major players; part IV will focus on lubricants trading.

Asia-Pacific Regional News
Mobil to build 8,000 bpd base oil plant in Singapore

Idemitsu to enter Chinese gasoline retail market

Taiwan refinery construction to commence in April

Singapore’s 1995 petroleum product output down

The Philippine Department of Environment and Natural Resources (DENR) is getting ready to review the country’s strict and “unrealistic” air quality standards.

Automobile sales in Japan exceeded five million vehicles in 1995 for the first time in three years, and should keep rising in 1996 amid strong demand for recreational vehicle.

Asia’s 10 economies to grow 7.4% in 1996

Mobil studying ethylene cracker plant in Singapore

Sonoco Products Co. will begin operations in Indonesia.

S. Korea’s vehicle exports

GM to build plant in Thailand or Philippines

Slower growth expected for China in 1996.

Petrolimex says sales rose 12% in 1995

Sinopec aims to up 1996 production by 3.6%